With the recent update Microsoft has changed the storage size for SkyDrive. Prior to April 23, 2012, SkyDrive offered 25 GB of free storage. 
This is still available to current users, however, it requires action by the user.
The size is reduced to 7 GB, which is also the size of free storage for mew users, and is in effect now.
Log in to your SkyDrive. 
You will now see that the left pane shows “xx GB free of 7 GB”.
If that is enough for you – Microsoft says “99.94% of SkyDrive customers today use 7GB or less” – then you need do nothing more. However, if you wish to regain the larger storage size, click on Manage storage – or the notice banner above your files listing.
On the “Manage storage” page the free upgrade is made very plain.
You can see the prices for additional storage space. But first, click Free upgrade! The process is quick and simple, so do it now.
.:.
© 2011 Ludwig Keck
This 'n That 
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Thanks for letting us know about this
not available any more
So the upgrade time was rather limited – less than four weeks. Sorry you missed it.
i wonder when the next free space downsize will happen? about the time I switch to a better service.
A recent message from a friend (May 31, 2012) said that the upgrade to 25 GB was still available – provided that you had used SkyDrive to store something prior to April 22. Hopefully competition with mean more free storage in the future rather than less.