Is the PC connected to the Mesh? Logged in?
One way to resolve this would be remove the machine from your Mesh at
www.mesh.com and then uninstall Live Mesh. You can then delete the folder, then add the machine back to the Mesh and set up the sync relationships again. Painful if you have lots of folders/files set to Sync, of course...
-steve
~ Microsoft MVP Windows Live ~ Windows Live OneCare| Live Mesh|MS Security Essentials Forums Moderator ~