Windows Live SkyDrive is now available in the UK. It is offering 500MB of online storage space for free, which can be divided up into a set of private folders, shared folders or public folders. You could use the shared folders for assignments that pupils could read from or maybe read/write to, if you don’t have a VLE yet.
Another advantage is that you can access your files from any PC with internet access, which could be useful for sending work between home and school. Although, I suppose it could also be a disadvantage – if you don’t watch it then those flash games and mp3s might make their way back into the classroom. 😦
You’ll need a Windows LiveID/Microsoft Passport for the service. Sign up here: http://skydrive.live.com/