Earlier this year, a German man was banned from SkyDrive, along with all of the services linked to his Microsoft online account, due to uploading four partially nude pictures in his private folder. Microsoft has stated in its EULA that users cannot upload "nudity of any sort, including full or partial human nudity, or nudity in nonhuman forms such as cartoons, fantasy art or manga" in their SkyDrive account.
The EULA doesn't allow users to upload any "pornography", which means you can't install your legally purchased porn movie on your private SkyDrive account.
SkyDrive also doesn't allow any files that have "vulgarity" or "profanity", meaning that, in theory, your SkyDrive account could be banned if you upload a document with just one swear word inside. There's also a ban on "gratuitous violence", which means you could possibly be banned if you upload a movie of your gameplay in, for example, the "M" rated Halo series from Microsoft.
Venture Beat tried to find out why Microsoft is so restrictive but their article said that the company's spokesperson would not answer any specific questions. Instead it sent out a statement which said, in part:
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. We understand no system is perfect. That’s why we are constantly improving our ability to ensure the privacy, security and availability of our users’ data around the world.
