Just in case the current scheme wasn't complicated enough, Microsoft is once again rejiggering its plans for Live Mesh and Windows Live Sync. Now, what is currently the new Windows Live Sync will be renamed to Windows Live Mesh. And there are some important changes afoot, though we won't see them until the final version of Windows Live Essentials 2011 ships in a few months. The emphasis below is mine:

In our beta release, we brought the best of Windows Live Sync and Live Mesh together. With the addition of remote access and cloud storage, we understand that the new program does more than sync files.  So following the beta period, we’ll be using the name Windows Live Mesh going forward, which we feel best reflects our broader goal of allowing you to access your stuff across your devices.

A number of our customers noted the inability to sync hidden files, so we added this support. Another point of feedback was that customers wanted a list of which files were missing in a synced folder. Now when Windows Live Mesh detects missing files, you can easily see the file name and when and where it was last modified.

When syncing files to the cloud, beta participants get 2 GB of synced cloud storage. Only 2% of these participants are using more than 1.5 GB. However, Live Mesh offers 5 GB, and while only a small number of Live Mesh customers use all their space, we want to ease migration and increase the online storage limit from 2 GB to 5 GB.

We’ve made several performance updates to Windows Live Mesh in response to your requests that will provide noticeable improvements to your experience. We worked on cutting the application load time in half and made syncing large numbers of folders and adding multiple devices to a sync folder faster. We’ve optimized both memory and CPU usage during sync activity as well as decreased CPU consumption by as much as 30% when Windows Live Mesh is idle.

Confusing on the naming side, but good stuff all around, and this answers many of the complaints I've made and heard from readers.