Make a New Document in SkyDrive
You can create Office documents in SkyDrive from the New menu in every SkyDrive folder. This offers Word and OneNote as well as Excel and PowerPoint but the OneNote Web app isn’t available at all, and the Word Web app only lets you view documents, not edit them. PowerPoint lets you view, create. and edit files and Excel is the only app that allows you to collaborate with other people on the same document.
When you choose a document type you can actually create, you name the document first and then the Web app opens with a blank document. The New document page and the document details page both show you a preview, which at the moment does nothing more than show you a really big icon for the file type. If Microsoft were to add templates, then the preview would be much more useful.