According to the Windows Live Mesh Blog – build 0.9.3103.2 has been propagated to the Live Mesh servers and is now available to all users.  I in fact got my update today when I came home from work:

livemeshupdate 

It looks like the "biggest” feature added is the ability to share your files peer to peer style between your various machines without going through your Live Desktop.  As well as this some of the other features mentioned in this update includes:

· Sync Live Mesh folders peer-to-peer only, excluding your Live Desktop. This will make it possible to synch files across your devices (or with devices of other members of a Live Folder) without consuming any storage space or quota in the Live Mesh cloud storage service. For completeness sake, though, we should mention that it’s not a 100% P2P synch – to optimize the synch experience we still use the cloud to store the authoritative metadata for the folder (for example, the file list and change history) and to broker encrypted P2P connections between clients. But the files themselves will not be stored in the cloud. Also, note that only the creator of a Live Mesh folder will have permission to change the cloud synch settings, since all the contents of a Live Mesh folder (no matter which user uploaded them) get charged against the quota of the folder’s creator.  We’ve got some details on how peer communications and synch work up today on Channel 9.

· File conflicts management on the Live Desktop. Pretty much speaks for itself. The same ability to view and resolve conflicting edits to a file that you’ve had in the Windows client is now available on the Live Desktop. Actually, we think it’s an even better experience, since we took the opportunity to streamline the UX when we implemented it for Live Desktop (we’ll bring the same improvements to the client in the future.)

· Added news events for New Live Mesh folder and Delete Live Mesh folder. We’re continuing to tune the news feed to provide the right set of information you need to keep track of what’s happening across your mesh.

Fixes

· Improved performance when syncing files peer-to-peer. David and Trevor get into some of the details of where we found room for improvement in today’s video.

· Better coalescing for news events. In non-geek speak, that means we’ll do a better job showing you only one news event when a user makes a bunch of changes in quick succession.

· News performance and scale improvements. Faster and better, new and improved, it slices and dices!

The day is coming when this technology will over take Windows Live Skydrive (aka Live Folders) as the preferred means to share files across your version of the Wide Area Network (WAN).