Windows Essentials 2012 includes the new SkyDrive for Windows app as well as Windows Live Mail, Windows Live Family Safety, Windows Live Writer, Windows Live Messenger, Outlook Connector Pack and Windows Photo Gallery and Windows Movie Maker.
Windows Live Mesh and SkyDrive
If you install Windows Essentials 2012, it is important to note that if you have Windows Live Mesh installed, it will automatically be removed if you install the new Movie Maker or Photo Gallery. In its place Microsoft SkyDrive will be installed. Microsoft has specified that if the new Movie Maker and/or Photo Gallery in Windows Essentials 2012 are installed, you can not have Windows Live Mesh on the same PC.
In order to sync folders from the cloud to all of your PCs, it will then be necessary to install SkyDrive on all of your PCs or Macs. (Windows Live Mesh continues to be available from the Download Center: Windows Live Essentials.)
Know the Difference
The important thing to keep in mind is the one major difference between Windows Live Mesh and SkyDrive. With SkyDrive, all files are "in the cloud". Unless you update to Windows Essentials 2012 and install the new Movie Maker and/or Photo Gallery, with Windows Live Mesh, you can also have files in the cloud but you can also avoid the cloud and just sync files across PCs/Mac.
Microsoft has provided excellent step-by-step instructions for both Windows Live Mesh and SkyDrive in the articles linked below.
References:
Windows Live Mesh
Sky Drive
Download: Windows Essentials 2012 (Web install)
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