Live Mesh lets you choose folders and files on your computer that you want to synchronize with other computers, and with an online desktop called your Live Desktop. The system gives you a lot of control over which folders to share, and which computers and devices you can use to access those folders. You can also share folders with other Live Mesh users, see when those users are online, and even when they're accessing your files.
Right now there are basically two separate interfaces for Live Mesh: the desktop version and the web version. From either interface you can see a list of updates to your files and folders, access those documents, or initiate a remote desktop connection.
Ultimately, developers will be able to write applications for Live Mesh that you can also synchronize across platforms. In other words, you'll be able to sync more than files. Say you've developed a household budget tracking application. You can share access to the application with other members of your household, and every time someone makes buys groceries or pays a utility bill, they can enter the amount on their own computer and the updates will be available on everyone's system.
We've embedded a video from the Live Mesh blog explaining the service after the jump. You'll need to have Microsoft Silverlight installed to watch.
