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I signed up for Ubuntu One, it says that I will get 5GB free storage space, but on my PC the Ubuntu One folder is only 728Mb.

What is happening here?

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Where are you getting this free space number from? Might this be the amount of free space on your local disk instead? – James Henstridge Apr 3 '12 at 10:45
Alternately, are you seeing the total consumed space in the folder? – Adrian Apr 3 '12 at 18:02
Can you give us a screenshot? – Anwar Shah Aug 5 '12 at 5:54

Ubuntu One stores files on your disk, and does not operate as a networked drive. The "free space" reading you see in the file manager is the amount of free space available for the disk partition on which that directory exists. Your $HOME and $HOME/Ubuntu One folders should both show the same amount of space available, when looking in the file manager.

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