Hi Aaron,
When you delete a file within a Live Mesh Folder, it will indeed remove it from the Live Desktop. On the devices that are synchronizing that folder, the Live Mesh client will attempt to move the file to the local Recycle Bin so that you can resurrect the item if need be. Note that there are certain instances where this could fail (if your Recycle Bin is full, for example). The same thing will happen regardless of whether you deleted it from the Live Desktop or a device.
Deleting a Live Mesh Folder is a slightly different experience. In that case, the Live Mesh Folder will disappear from your Live Desktop, and all devices will stop synchronizing that Folder, but the files and folder within the Live Mesh Folder will stay where they were on disk.
Does that answer your questions?
Thanks,
Richard
Richard Chung [ Live Mesh ]