I suspect that you are referring to Windows Live Mesh.
For discussion of the new Windows Live Mesh (formerly Sync), (as well as the released Live Sync version) go here:
http://windowslivehelp.com/forums.aspx?productid=24
Both Live Mesh beta (this forum, service will be dead in about a month) and WIndows Live Mesh *sync* the entire contents of a folder that you add to your Mesh with other PCs in the Mesh that you configure
to *sync* that folder. Sync means copy, delete, add, change, etc. so that the folder matches in both places. That's the basic premise. When you share a folder with someone, you can specify rights to allow the other user certain activities.
However, you apparently ran into a widely reported bug in Windows Live Mesh if you created the shared folder at the root of the drive. The folder will automatically share with the other devices and
people into their Documents folder. Since you called the shared folder Documents, it apparently made things worse in that it shared Documents with Documents.
In any event, when files are deleted from a destination machine by Mesh, the user will find them in their Recycle Bin for recovery unless they exceed its capacity or the user empties the bin.
-steve
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