I just noticed this link on Furl; Lycos have a new system in the works for a virtual hard drive:

From mid-September, users of the new service will be able to "drag and drop" files from windows directly into a new online file storage drive.

Lycos says the drive can store any kind of file, such as image, music and movie files, as well as Word documents and presentations.

The firm will offer up to 1GB of file storage on the drive. At the same time, it will increase storage sizes for all its mail services, which will also feature a new look user interface.

The new service will also include synchronisation between an online calendar and Outlook.

Lycos says the new service will free users from their PCs, making documents, contacts and communication available from anywhere they have a internet connection.

Lycos upgraded their email service last month, making the interface simpler as well as introducing an Online Drive feature that allows you to upload files.
There is no drag & drop function with the Online Drive already available, and there's a 10mb storage limit.

Related info:
Two New Lycos Search Tools