Microsoft recently overhauled its SkyDrive cloud service with a brand new look and fancy feature updates, but one policy that remains is that users are not allowed to upload full or partially nude photos or drawings, a restriction that applies to both public and private folders. It's unclear how actively Microsoft scans private folders for what it deems to be inappropriate content, but as far as the fine print is concerned, SkyDrive's upload policy is one of the most restrictive around.
VentureBeat donned its detective cap and dug up some pertinent parts of the Windows Live code of conduct related to nude photography. The restrictions are pretty vast, and it doesn't matter if the images are real photos, cartoons, or drawn images, nor does it matter if they're hidden in a private folder. You're not allowed to upload them to SkyDrive, plain and simple.
When pinged for clarification on why the policies are so restrictive, Microsoft offered VentureBeat a canned response that didn't really answer the question. One thing the Microsoft spokesperson did say, however, is that "Any content we find to be in violation of our Code of Conduct is subject to removal -- and in rare cases, can lead to temporary or permanent shutdown of an account."
SkyDrive isn't the only game in town, of course, and others like Box, DropBox, and SugarSync appear to be more flexible in what users are allowed to upload, so long as they don't run afoul of the law.