Update Apr 8th, 2008: Please see warning against Keepit.com elsewhere in my blog
A company www.Keepit.com offers 2GB of free online backup-space (at least in Denmark) which may be quite nice for many users, may be enough to store your pictures and mail.
The client software is not the worlds most advanced I have been told, but again for home users it may be quite sufficient.
Pay and get more :-), should you be willing to pay DKK 29 ($4.5 or €3.9) you get unlimited storage space. Seem like a quite reasonable solution.
I have not tried this yet so I am uncertain about security and encryption etc, but I have been told that it indeed uses encryption and your data should thus be safe from prying eyes.