It still remains to be seen how useful and popular Windows Live Skydrive will become, but if you happen to have an MSN account you automatically get 25Gb of free storage at your disposal, which in my case is enough to backup all of my important personal data - documents, photos, etc (the photos of which are the most valuable). There are several ways to connect Skydrive as a mapped drive ... some are better than others, but this is the best way I have found so far.
Go and download SkyDrive Simple Viewer for WebDAV. Extract the files to your C: drive and run the command like so:
dumpurls.exe <UserName> <Password>
This should output a bunch of URL's representing the folders in your Skydrive.
Open up My Computer, click on Map Network Drive. Copy and paste one of the URL's into the box and click OK. Enter your Windows Live credentials into the logon box when it appears, and hey presto, your 25Gb off-site storage box appears as a mapped drive in My Computer.
Now you can back stuff up to it, manually or automatically (through home brewed scripts) and access your stuff from anywhere on the Internet. Just remember not to backup anything personal to the "Public" folder, as that is visible to everyone.

