I have an issue when files sync even when they are not modified.
I have the selected the option to sync only "When files are added or modified" for each folder. However even when I open a file and then close it without making any changes or saving the file, it still syncs the file.
This causes a few problems. For example:
A friend and I share the same folder. He may go and make a change to an excel file the we both have open at the same time. He will then save the file and close it for me to have a look. I will then also close the file shortly afterwards so I can view his changes. However, it then proceeds to sync the unmodified/unsaved excel file that I just closed. As mine appears to be the newer sync (however it is still the older unchanged file), it then overwrites the changes my friend just made.
Unfortunately the problem you are describing is a common one - a lot of programs (including Office) will modify a file when it is opened, in order to record information such as "last accessed time", "username" and other meta data that it uses internally.
Live Mesh then detects that the file has changed (but does not delve into exactly what has changed) and queues the file for syncing. This will be slightly mitigated if delta sync is implemented (then only the differences are synced, meaning tiny changes such as these are synced very fast) but not totally (since you'll still need some sort of conflict resolution).
The only way around this (that I know) is to open the file as "read only" if you are just viewing it, this causes the file to open without modification (but you can't make changes, so small benefit).