Help with Sky Drive

You have to do this for each of your Skydrive folders so each folder gets a different drive letter.
Are those actually virtual drive letters that get picked from the available drive letters in your system? Reason I ask is that I have already 8 drive letters used in my system and on Skydrive I have about 40 files. One would run out of letters in such a scenario.
Yes it is. It's not one drive letter for each file though, it's one for each Skydrive folder. Basically it works just like when you connect to a network share on a lan or a Windows domain.
Hmm, I guess that is not suitable for me. I just counted my current folder inventory - there are 40. And I am constantly adding
 

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In that case no, this is definitely not for you.
 

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