Actually, Live Drive is more properly called Windows Live Folders, but it’s nonetheless entered beta testing.  This “will provide customers with 500 megabytes of online storage at no charge,” according to a statement from Chris Jones, Corporate Vice President of the Windows Live Experience Program Management.

And, yeah, I know 500 megs isn’t much – especially compared to what some of Microsoft’s competitors have made available (see this AP article for details) – but Jones says, “We see this limited managed beta in the United States right now as just a starting point for us, and we’ll begin collecting input from beta users during the testing process, which will be useful when developing future versions of the service.”

No other details about this particular service were forthcoming, but Microsoft took the opportunity to announce a few other things, including the introduction into beta of Windows Live Photo Gallery.  This will be “a new version of the photo application found on Microsoft’s two most recent operating systems, Windows XP and Windows Vista,” explains Reuters.  “It simplifies how people can share photos on their Windows Live Spaces site, Microsoft’s social networking platform.”

So, Gdrive isn’t here yet, and Live Drive isn’t all that impressive, but we’re getting there, folks.  If Jones and Microsoft are to be believed about “refining, adding and connecting products,” then we’re getting there.