As rumored, Apple has updated its .Mac services suite.
In addition to Web Gallery, which was introduced as an integrated part of iLife '08, Apple is bumping up the standard storage size from 1 GB to 10 GB. The price remains $99 for a one year personal subscription. Family packs are available.
Update: More details are becoming available about the features of the .Mac update now that the event is over.
According to Apple's .Mac website, Apple will be rolling out the storage increases to current .Mac members over the next week. The transfer limit has also been increased to 100 GB of monthly transfer for regular .Mac accounts, and 200 GB for family packs.
Apple also announced the ability to use a personal domain address with .Mac. While Apple says they currently do not sell domain names, they provide steps to get your domain purchased at a domain registrar working correctly with .Mac.
