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How much is 500mb storage & 2gb data transfer?

We have a site being built that includes "500mb storage" and "2gb data transfer".  Can someone tell me what that means?  

For example, how many pictures or files can 500mb of storage hold?  I know data transfer has something to do with web traffic, but I don't know if 2gb is good or not?

Thanks.
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Is data transfer just the number of people that come to the site, or is uploading/downloading files?  Also, can you quantify 2gb?  Meaning, is that X number of daily hits, etc..?
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Thanks for the detailed response!  I appreciate it.  I'm going to leave this open for another day or two in case anyone else wants to chime in.  ~ Tina
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