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Thanks a million for all of this great research! The MobileMe backup directory tip is brilliant!! I was tearing my hair out with MobileMe sync and about to bail and just use Bonjour. This is a big life-saver.

OmniGroup should consider making either the backup directory, or one of the other online (non-synced) directories the default for MobileMe syncing. I think it would save a lot of people a lot of headache in future.