I'm one of the Touch Diamond users who haven't been able to use this thing now for 6 months because it keeps crashing on startup. We've submitted our bug reports. Is there any updates on this? What's going on guys!
The Live Mesh team (and most product teams at Microsoft) won't announce a new release until it is actually ready to be released - and usually not until it is already being released/made available. I'm sorry that the problem is a blocking issue for you, but all I can advise is to check back periodically to see if a new build has been released and see if that addresses the issue. -steveMicrosoft MVP Windows Live / Windows Live OneCare & Live Mesh Forum Moderator
I had that issue and I uninstalled live mesh and manually deleted the folders for live mesh. I then downloaded the mesh client from the mobile website and reinstalled and that fixed it for me.