Check out http://www.myotherdrive.com. This site gives each user a free 5GB online drive. The user can upload/download files to this drive in bulk (not one-at-a-time like so many other sites do). Also, each file can be up to 2GB (not 2MB) - many sites limit the size of individual files to 5MB or so.
You can use the site for more than just online storage and backup. Use it to share media files (videos, music, photos, etc.) with your friends and family. The site includes a viewer to view 'image' type files (JPEG, GIF, PNG, BMP) as well as text files. It even offers the ability to rotate image files right on the site.
The site will soon offer the ability for the user to tag their files with keywords and provide content search, so others can find them (of course, only the files that are publicly shared!) This feature, coupled with the upcoming media player, will be a superset of the functionality of 'fad' type sites like YouTube.
Oh yeah, the site is free!