Hello,
Strangely, Live Mesh did not create a second folder on my desktop as if it was transferring a copy of each folder, but it was definitely eating up my hard drive, so it was creating a folder somewhere, I think. Here is the exact sequence of events:
--I had my My Music folder synced to the laptop and the desktop, but not the mesh.
--one of the hard drives on my desktop began to fail, but I was able to make a fresh backup before it did. I removed the hard drive and RMA'd it to the manufacturer.
--While the desktop was bricked, I purchased and downloaded several albums to my laptop.
--When the new hard drive arrived, I installed a new copy of Vista Home Premium x64.
--I restored a copy of the My Music folder from the backup that I had made several weeks earlier to my main desktop drive
--I set the My Music mesh folder to sync to that location.
--Live Mesh began transferring ~65GB of information (about the size of the My Music folder) in both directions, but did not create a second folder location on either computer, at least not one that I could find.
Hope this helps. I ended up with umpteen million conflicts, although I think this was correct behavior since when I restored the desktop version from backup it reset the "date modified" tag, so Live Mesh had no way of knowing which files were newer.
Because of the conflicts, I gave up and removed the folder from Live Mesh, deleted the desktop version entirely, and resynced to the now empty folder. It is now in the process of transferring the newer copy on my laptop over to my desktop, and appears to be working correctly.
