We're doing some server maintenance over the next couple days to update some of our configuration information. During this time you may experience Live Mesh service outages, including Live Mesh folders that are not synchronizing, or an inability to establish Live Mesh Remote Desktop connections to your devices. We'll update here once we've completed this work. Thanks for your patience as we get everything patched up.
UPDATE: We've completed the work mentioned above. Some users have reported issues with their devices appearing in the offline state and not available for Live Remote Desktop connections. To bring your device back to a healthy state, you need to exit and restart the Live Mesh client software, and then also stop and restart the Remote Desktop services (either net stop/start wlcrasvc, or just reboot). Step by step directions are at http://social.microsoft.com/Forums/en/LiveMesh/threads/ under the "Live Remote Desktop Issue" thread.
Quick background: our updates this week involved a regularly scheduled update of some of the certificates we use to identify devices in the Mesh and to encrypt traffic sent to or through our servers. We've discovered some cases where the client software doesn't pick up all the right updates unless you follow the particular order above (restart the client software/notifier first, then restart the remote desktop service. As always, we appreciate your help in tracking down these kinds of issues in our Tech Preview.