What happens if my internet is cut or I stop a file transfer midway? Do I need to restart the whole thing? Does it continue midway?

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Questions about web applications are off topic according to the FAQ. This question might be better asked at webapps.stackexchange.com – ChrisF Aug 15 '10 at 21:09
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I voted to close as OT but have now changed my mind. This does not belong on webapps. This is more like asking about what happens when connection is lost while rsyncing or ftp'ing something, – Nifle Aug 15 '10 at 21:35
A comment as I don't know the answer and can't be bothered to check. Unless they (Dropbox) are stupid your upload will resume (and I very much doubt they are stupid). – Nifle Aug 15 '10 at 21:38
I checked their site, no info there. I tried closing the Mac version and restarting - it seems to continue. I am looking for confirmation now. Thanks. @ChrisF - Sorry, Nifle is right. I'm asking what happens when the connection is lost. – Moshe Aug 15 '10 at 21:42
@Moshe - I suggest you answer this yourself after experimenting a little more. – Nifle Aug 15 '10 at 21:49
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up vote 4 down vote accepted

It depends on the action, if you're uploading a completely new file and the upload is suddenly interrupted, you're required to re-upload the entire file. If you're syncing files and the the sync is currently interrupted, you will only need to sync the parts of the file that have not been synced yet because Dropbox uses Delta Encoding technology:

Delta encoding is a way of storing or transmitting data in the form of differences between sequential data rather than complete files; more generally this is known as data differencing. Delta encoding is sometimes called delta compression, particularly where archival histories of changes are required (e.g., in software projects).

UPDATE

I've been playing with this a bit and it seems to vary, sometimes I'm forced reupload the entire thing, sometimes it just resumes...

References:
http://en.wikipedia.org/wiki/Delta_encoding
http://en.wikipedia.org/wiki/Dropbox_%28service%29#Functionality
Own experience

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Not true - you can resume uploads and downloads whether they be files that have already been uploaded as opposed to new files which have not been uploaded before – emtunc Jan 23 '11 at 10:19
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