Microsoft Fixes Bug in Windows Live File-Sharing Service

Microsoft confirmed it has fixed a bug in its online file storage and sharing service Windows Live FolderShare after users reported problems that the service was deleting files without user authorization. Microsoft sent an e-mail to users Friday alerting them that it has fixed a bug that may have "accidentally moved" user files from their original folders into the FolderShare Trash folder, and that users should not delete files in Trash until they ensure they were meant to be deleted. It also advised users how to retrieve deleted files from the Trash folder. A copy of the information sent to users has been posted on the FolderShare Web site.

In a Microsoft statement e-mailed by its public relations firm Monday, the company said it is working to assist users who have lost files on how to retrieve them. It also said that another online storage service that is also in beta, Windows Live SkyDrive, had not been affected by the bug. Windows Live FolderShare, which allows users to store files online and then download and synchronize files to and between different devices and computers, is currently available in beta release.

News source: PC World

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SkyDrive: Your files hosted on a centralized server (and presumedly having backups)
FolderShare: Your files stay on your PCs, mirrored and sync'ed. No protection against data loss (except the accidental deletion).

I don't understand why they offer two services for almost the same purpose, instead of joining them together and thus saving resources (or developing faster). I use SkyDrive and it's very nice and useful, of course being able to modify files from within your computer (or sharing them between machines) is not bad at all.