Gmail offers around 7 GB as on 20th November 2008. And they have the storage increasing everyday by few KB.
I guess it will take another year to add 1 more GB.
But for any email user 7Gb is really great. Gmail does not restrict the number of email Ids that you create, so you can forward your old emails to another Gmail ID and archive it. And do not forget to delete the forwarded messages in your Gmail.
When you run out of Gmail Storage Space, all your email will stay in Gmail server for few days. You will also get a notification on your alternate email ID that you have provided to Gmail. If you do not delete and empty some space for new messages, Gmail will send the emails back to the sender.
You can see your Gmail space usage at the bottom of the Gmail page after you login. These letters will become red when you reach near the maximum limit.
Gmail also calculates the message size in your spam folder and messages in your Trash folder. So make sure to delete Spam folder and empty the trash folder.
Gmail also counts your attachment size when calculating the storage space.
So the best option would be, to create one more Gmail ID and forwarding your old emails.
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