I use Gladinet Cloud Desktop which enables you to access your free skydrive.live.com account from the Windows Explorer. It also offers some other nice features like backup.
For some reason I had to delete all the settings of Gladinet Cloud Desktop. This fixed some issues I had with using the application (like chunking files for Skydrive). To delete all settings and even go back from Pro to Free version (so you can register it again) is done by deleting all files in: C:\Users\<your windows login>\AppData\Local\Gladinet (For Windows 7). Now the application is working like a charm with the 25Gb free online storage of Skydrive.