Hello,
I have a large folder synced to my desktop and laptop, but not to the Live mesh desktop. On my devices, the sync settings display correctly ("When files are added or modified" for the devices, "Never to this device" for the Live Desktop).
However, when I select sync settings for the folder from the Live Desktop, they incorrectly display as "When files are added or modified" for all the devices, including Live Desktop.
I'm having an issue with sync for that folder at the moment, Connect bug report here:
Perhaps it is related, perhaps not. Anyone else seeing this behavior?