2. Stored Content
Wuala encrypts all your files before they leave your computer. They are encrypted such that only you and those you have authorized can decrypt them. Even LaCie cannot decrypt them unless you have made them public or share them by secret weblink and access them with your web browser. In the latter case, the encryption key is temporarily sent to our web server as part of the URL for the purpose of serving the requested data.
They do exactly like Kim'sMEGA. They encrypt everything so that even they can not access it (or at least that's what they claim to do, nobody has yet proven that wrong, though). That is: unless you choose not to encrypt the data, or publish the decryption key, but then it is an another story.
The sad thing is that they use Java on client-side to do the access. Java Runtime has been described as a disease in an article in the Forbes magazine. They're right. It is a disease. In Wuala's own discussion forum there are a number of happy customers pleading to stop using Java.
What really pisses me off is that on my 64-bit Windows 7, the only reason to have a 32-bit JRE is Wuala. All my other software utilizes the 64-bit version I also have installed. Whenever a new JRE version comes out, I need to update both versions. Also I simply cannot use Wuala on all of my computers. For security reasons, I refuse to install Java Runtime into them.