Nate and I have made extensive use of Office Live Workspaces while writing our Azure book (in fact, it was a book on Office Live Workspaces for small businesses I initially pitched to Packt–kind of glad they talked me out of it). Workspaces was like a very lite version of SharePoint Services 2003. With the latest release of Office 2010 Web edition, Workspaces are being upgraded and merged with Skydrive. I got this bit of good news in today's email:
Within the next seven days, you'll have the opportunity to upgrade your Microsoft Office Live Workspace beta account to Windows Live SkyDrive. The service will remain free, and all of your documents and sharing permissions will be retained.
With your SkyDrive account you can:
1. Access and share documents and photos from virtually anywhere.
2. Take advantage of up to 25 GB of online storage.
3. Use Microsoft Office Web Apps to view and edit documents within a supported Web browser.
When your upgrade is available and you sign in to your Office Live Workspace account, you will see the notification below. Simply click "Upgrade now" and your upgrade will begin.