You are referring to
Windows Live Mesh, not Live Mesh - www.mesh.com
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
WLX files are placeholders, which suggests that they are in the process of being synchronized from another device that you have in your devices group.
Check your recycle bin for the local copies that may have been removed in preparation for the sync.
-steve
~ Microsoft MVP Windows Live ~ Windows Live OneCare| Live Mesh|MS Security Essentials Forums Moderator ~