I just "grandfatherred-in" for the 25GB storage. Everyone with hotmail account should do that fast
I don't know if just having a hotmail account is enough....I believe you needed to upload something to your SkyDrive account before April 22nd to be considered a "long-term" user.
But I agree...if you can, make sure you check in and get your quota bumped from the new 7GB to the old 25GB.
They also increased the max file upload size. I think it used to be 100MB (maybe 50MB I don't remember exactly) - now it's 2GB. Dropbox will be hard pressed to compete once more and more iOS apps add "dropbox-like" capability for SkyDrive.