Windows Live SkyDrive, the online service formerly known as Windows Live Folders that is provided by Microsoft to Windows Live users and provides free online storage and sharing services, has been updated and consequently it brings some new features to the table: sort and arrange photos in your albums; view photos of a specific friend; added support for Windows Live Favorites.

Here is a quick look at Windows Live SkyDrive, for the people that are not familiar with the online service. After setting up an account you get a total of 25GB of space to use: you can upload files to your SkyDrive account, but an individual file must not exceed 50MB. You can access your account from anywhere in the world, all that is needed is a PC and an internet connection; you can share your uploaded files with your friends; you can install an ActiveX-based tool so as to seamlessly upload files from Windows Explorer to you SkyDrive account (just drag-and-drop the files you wish to share).

Here are the updates to the Windows Live SkyDrive team announced:
Arrange your photos – by clicking on Sort by and selecting Arrange you can organize the photos in your collection according to your needs and whishes. Additionally, you can simply drag photos in the position and order you want as long as you have Silverlight installed on your machine.
View photos of yourself and friends – you can visit one of your friend’s profile page and view only photos tagged “Photos of <your friend’s name>”.

Support for Windows Live Favorites – thanks to the Windows Live Toolbar you can keep your favorites synced between computers. The new part is that your existing favorites will be automatically moved to SkyDrive the next time you visit your favorites on Windows Live.

Please note that these changes will be rolled out gradually.