It was reported in mid-2004 that Hotmail users would get a storage boost from the measly 2MB to a slightly more generous 250MB (possibly in response to Gmail’s whopping 1GB), it just wasn’t clear who would be getting that upgrade. Nearly two years on, I still see people reminiscing on that news wondering why they only have 2MB.
The answer is close, the frontpage of Hotmail has the following at the bottom left:
250MB inbox available only in the 50 United States, District of Columbia, and Puerto Rico. Eligible Hotmail users will first receive 25MB at sign-up. Please allow at least 30 days for activation of your 250MB storage to verify your e-mail account and help prevent abuse. Microsoft Corporation reserves the right to provide 250MB inbox to free Hotmail accounts at its discretion.
The better news is, Windows Live Mail is set to come with 2GB of storage space.
If they can soon manage 2GB, what was so hard about giving everyone 250MB?

that is not relevant to me. i have had 2GB on hotmail for several years now. i got that storage as part of msn premium subscription which costs £59.99 per year. admitedly you have to pay to get it but i am sure when they upgrade premium users to a higher storage limit then the 2GB limit will trickle its way down to the free users.
Stuart
I guess it was because they were preparing to work with the Live stuff, such like Messenger and the Mail, so maybe it was only an introduction…
i have got the 250mb, a few times people who have 2mb ask me why i “have so much”, i wondered why they have so little
when i did have only 2mb, i remember someone sending me photos from their holiday and because of the attachment limit, they couldn’t send more than 2 per email, so they sent about 5 mails and i only received the first cos i had no space left… the others just disappeared, no bounce or anything