I've been using Live Mesh at home for more than 3 months now (since it was only a Tech Preview). Just a few things you guys may not know about it...
It can sometimes take up to half an hour to update. Ususally it only takes 5 minutes max for it to detect changes, but it has taken me longer.
You can stop it from synchronising to the web-space. However, to do this you have to log in via the
www.mesh.com interface, select the sync folder, and then change the sync settings from there.
Also, there is a different Microsoft sync tool that might be more appropriate, although I have never used it personally. Windows Live Sync is supposedly better for PC-PC syncs, but I'd imagine that wouldn't work so well for upwards of 2-3 PCs.
@cciblazer my understanding is that all Mesh syncs are routed through the web, regardless of whether the files are synced to the web-space. Probably not appropriate in your case. SyncToy however is an extremely good offline sync program. I use it to sync files to a thumb drive at home, but have never tried over a local network. Is supposed to be pretty good for that use though. However, I believe it is only manual sync (you have to press a button every time) or via Windows scheduling... not dynamic syncing.