Microsoft have begun increasing free users accounts to 250MB storage and their paid subscribers to 2GB of storage.

Storage Account Details:
Free Hotmail Service:
250meg storage + 10meg attachment limit
30 day expiry if no activity
Antivirus scan & clean

Hotmail Plus Service:
Annual fee (price varies per country) expected to be $19.95
2gig of storage + 20meg attachment limit
No expire date
No unneeded graphics or ads
Access to pop3 settings
Antivirus scan & clean

All users should be upgraded by the end of the following week. However, how correct that may be is yet to be seen.

NOTE: It appears you can get 2GB of space free by registering an @msn.com email address. This could be a fluke, or it could indeed be the reality of having an @msn.com account. Details to follow if changes are made.

To get your free 2GB account:
Basically using the free MSN explorer that is included with XP (click start, click all programs, click MSN Explorer), you can sign up with a new @msn.com account and get a free 2GB email.

Have a look at the screenshot.