Offline folders is the XP thing you are talking about, but it is useless. It copies all the files into a folder called "Offline Files" and there is no way of changing this, so it all ends up being a complete mess. As I was trying to do the same, but I just use network drives now instead.

Sleep, share the downloads folder on the PC that is going to be on the most and then just save everything to that from both PC's, that saves you having to copy files all the time as both PC's will be accessing the files from the same folder, i.e. My Site is stored on my Server, but to get to it I have shared the remote computers drive (open my computer, right click the drive, click sharing, new share, give it a name, ok) then from my machine opened the shared folder and mounted the drive as a network drive (Tools >> Map network drive) and did the same for my websites folder, so it seems like I have another 2 drives on my machine. Drive Z: is the servers hard-drive and drive Y: is my website (a folder on that machine).

NS