Many Sync Framework Components are based on COM. So to make Sync Framework work in Windows Azure, special setup needs to be done. Basically the native Sync framework COM dlls won't be registered in Azure VM but private deployment will be used and the managed
Sync dlls (including Database sync provider) will use these native COM dlls through manifest.
We will be working on a sample to show how this solution works. It will be ready with next Sync Framework release in this summer.