Instead of auto upploading pics straight from camera to Skydrive, I find it more convenient and battery saving for Zune desktop to do it for me. Convenient, because it doesn't auto upload bad pics I intend to delete. Battery saving, because uploading pics is murder on battery life. Especially, at times when you're being a tourist and constantly taking pics throughout the whole day.
First download and install Skydrive app for your PC: https://apps.live.com/skydrive
So there are two areas you need to adjust in Zune desktop settings:
1a. Zune/settings/phone/pictures & videos/zune saves pictures and videos from your phone into the Pictures Library on your computer/[manage] - point to your Skydrive folder (or subfolder if you have created one, ex: C:\Users\Alvin\Skydrive\My Pictures).
1b (optional to keep resolution). Zune/settings/phone/pictures & videos/image quality/[original]
2. Zune/settings/software/collection/Windows Library/Pictures/[manage] - point to the same folder as 1a.
I think that's all I did. Now everytime your phone is synced wirelessly or USB, it will go straight to Skydrive cloud. If you have any questions or think I missed something, please chime in.