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How exactly is the update policy of LiveMesh? If i have file, bigger than lets say 500MB, will LiveMesh be able to do only a delta-update of the changes (like DropBox does!) or will it upload the complete file again? This is especially useful, if you want to use encrypted Containers like TrueCrypt.

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As per my understanding, currently Live Mesh only does a re-sync. No delta-sync (but it's in the wish-list).

confirmed from some quick googling:

I can totally empathize with your requirement regarding the Truecrypt encrypted folders

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