No problem here.... Try re-installing the App
Also, check whether some security software is blocking SkyDrive from accessing the servers
Personally suggesting DropBox is much better then SkyDrive,
first of all its not platform limited,, skydrive only support win 7/8
one of my laptop also have win xp, so I move to Dropbox (it support windows xp,7,8,vista, linux,mac),
its much light-weightier then SkyDrive, and more controls then DropBox(you can also control whether to update your cloud folder or not!! my favorite feature), I think soon dropbox will provide alternate for skydrive in windows 8, where you can change all skydrive area to dropbox.
And I found out that you need a high speed internet connection in order to just give it that kick start and with the blink of your eyes, you're in !!
The other problem with SkyDrive as compared to Dropbox is if you update any file, SkyDrive completely replace the old file and upload a complete copy of the file whereas Dropbox only update the part that has changed saving your bandwidth and time. This is the really bad part of SkyDrive.