I just had a similar effect, and I am not amused. I installed the free 7GB Skydrive a few days ago, made a subfolder under "Public", and copied 3 large mp4 videos (total size: 4.75 GB) into the corresponding folder on my local Skydrive folder.

Skydrive was busy for days uploading this stuff. Now I find that it says "Aktuell" (= complete) but none of my 3 files is online, I still have 7 GB free space while the three video files still sit in my local Skydrive folder.

WTF?

-Michael