I've just recently been made aware of Boxcryptor and think it's great!
I'm however interested to know - Does using Boxcryptor with SkyDrive in any way violates Microsoft's Terms of Service? Since effectively Microsoft would no longer have access to the contents of encrypted files stored on their servers.
The reason I ask is that in recent times I've read of people having their entire Microsoft accounts deactivated just because of certain files users have uploaded that while not illegal, still manage to violate their ToS. Like many, I've quite a bit attached to my Microsoft account (e.g. emails, Xbox status etc.) that I would hate for them to have an excuse such as storing encrypted files as a reason to terminate my account.
I've had a preliminary read of their terms but don't see anything jumping out at me in relation to this. I wouldn't be surprised that even if there isn't a clause now there could be in the future as large cloud-based storage providers demand transparency of what people are storing on their servers.