Microsoft updated SkyDrive overnight and it is now integrated it with Office Live, meaning you can edit your office documents directly from within SkyDrive. They also changed their authentication and upload mechanism which has means our sync mechanism no longer works with SkyDrive. We are fixing this now and will post an update as soon as this is done.
Update: This is now resolved and you can access SkyDrive as normal via the SMEStorage gateway and data access tools.
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