I believe that A is your best solution to make sure that all things are clean. It doesn't matter, though, where the folder originated if you are moving the Mesh folders from the desktop after removing the folder from the Mesh on each PC.
As for C, the shortcut always appears on the desktop first, but there have been reports that indicate that the folder is created directly without the option to selectthe destination. The expected behavior is a shortcut for the offered folder until you click
it and select OK or Browse to a location to merge with.
Double clicking when it is faded light blue folder, brings you to a windows titled:
Synchronize folder
The text at the top of the window says "Synchronize folder with this computer."
The name cannot be changed/
The location is the path to your desktop folder.
Next to this is browse.
At the bottom of the Window is OK and Cancel.
OK accepts the default offered location - your desktop.
If you click OK, it will become a darker blue folder (still light blue) and it is now fixed to your desktop.
If you click Browse, you can navigate to a folder of your choosing.
Once you have reached that folder, click OK and accept the warning about merging with an existing folder and potential for conflicts.
-steve
~ Microsoft MVP Windows Live ~ Windows Live OneCare| Live Mesh|MS Security Essentials Forums Moderator ~
