Windows Live Folders, the online file hosting and sharing service from Microsoft, is now available in public beta. Each folder and file uploaded on Windows Live folders will have their own unique web address (URL).

Windows Live Folders
Windows Live Folder currently provides 500 MB of free storage space while individual files should be less than 50 MB in size.

Windows Live Folders - The service was code-named Live Drive.

Files can only be uploaded to Windows Live Folders via a web browser (IE or Firefox). You can create personal, shared, and public folders.

Chris has more more details and screenshots of Windows Live Folders on LiveSide.

It may be a bit premature to say if AOL XDrive will feel any heat from Windows Live Folders because the former offers 10x more space and there's even a desktop software to upload files from Windows Explorer.

Microsoft has neither released any desktop based file uploading client nor any tool to sync the online and offline file folders.

Update: Windows Live Folders website folders.live.com is now offline.

Related: Google Drive (gDrive)