The Live Mesh team at Microsoft announced today that P2P storage between Mesh nodes is now available in the latest client update. Previously storage on the Mesh worked by utilizing the 5GB allocated to each user on the central hosting platform at Microsoft. Users are now able to sync their files between connected nodes automatically.
The new technology works by synching the files between computers, but the metadata is still stored centrally (although it does not count towards a users quota usage). All Mesh objects and folders can be copied between devices directly, except for the Live Desktop. The video below is from the Live Mesh team talking about the P2P technology and how they solve conflict and other issues that have plagued other P2P storage attempts in the past.
As we wrote previously, the applications currently on Mesh.com are implementations of a broader development platform being built and developed based on open formats and standards. Live Mesh has been available to anybody with a Microsoft Passport for a few weeks now, with Vista and XP clients available for Live Mesh and a Mac OS X client is in the works.