I don't believe that you can mix and match the versions of Windows Live Essentials.
Since you are referring to Windows Live Mesh, not Live Mesh -
www.mesh.com, you are in the wrong forum. Yes, the naming convention is confusing, though I like that they kept the Mesh name alive for the upgrade to Live Sync (formerly FolderShare).
For discussion of the new Windows Live Mesh (formerly Sync), (as well as the released Live Sync version) go here: