Just stumbled on this new Beta service from Microsoft. It is basically a free 500MB of file storage. You have 3 zones to add files to:
1. Private for files that are only for you.
2. Friends for files that you want just your friends (MSN Messenger Contacts). The awesome thing about this feature is that you set special permissions to each folder (which friends gets to see, change, delete stuff in it). Great for team work projects :D
3. Public for anyone on the Internet. Sign up is easy and straight forward as well as uploading files. After you upload a file you get a link to distribute.
Pretty nice and fast service as far as I see it now. Better than sending myself e-mails with attachments to keep them online.
Update: The storage size have been upgraded to 1GB.