My app runs on Android, iOS, WebSite, WindowsPhone, and now Windows 8. I use SkyDrive already. It’s where I store the file(s) my app creates.
It would not be technically difficult to also store my app settings in SkyDrive. This would let me have a “unified” settings experience across devices. That’s nice.
Is this allowed? I can do it “technically” can I do it “legally”?
It does not. SkyDrive does not preclude you from using the SkyDrive folders for a repository of a settings file (like a XAML file or something). It is not a violation of ToS.
Warning! There is no protected area of SkyDrive for apps to store this sort of information. As a result, the user could delete or tamper with settings files at any time. If you decide to use SkyDrive to store these files, also create a mitigation plan if they are missing or damaged.