Update 2: After communicating with the Windows Live team, it turns out I misunderstood some of the original features available in SkyDrive Sync Folders. First, files in Sync Folders cannot be opened in Windows Live Office Web Apps, which is rather unfortunate. I think that would be a killer feature, so I hope they included in the future. It would definitely be a leg up on the competition.

 

As for being unable to access my SkyDrive Sync Folder files in the first place, there is a known bug with Sync Folders that have over 10,000 files in them. The SkyDrive team is working on this issue.

 

You can find the original post in its entirety after the break.