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This forum thread suggests that it's possible to sync between friends/family, but I can't find any way to actually configure this.

I've added the other person as a "friend" on the Live website, but can't see what to do next. The Windows Live Mesh UI still doesn't offer any options that look relevant.

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Go to https://devices.live.com/Sync/Summary, select the folder you want to share, then select "Edit permissions."

Not exactly intuitive, but this should let you share the folder.

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