The Microsoft SkyDrive site is currently working in read-only mode. This means folder creation and upload is not functioning.
Microsoft’s SkyDrive site acknowledges the problem when you try and upload or create a folder and post a message that they are working to resolve it.
This means that using SkyDrive via SMEStorage will suffer from the same restrictions until this is fixed.
Note: this issue is now resolved
by 
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The Leading Enterprise File Fabric
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