Version 2.0 of SyncToy has been released on MSDN Downloads. SyncToy does not replace FolderShare for syncing files between different computers, but is a more effective way to copy/move/sync files on your computer. The dev-team uses the tool primarily to move pictures and music from devices (cameras, mp3 players etc) to folders on their computers or network shares in a more effective way. It's not a service/system tray kind of thing, just a utility that remembers a number of different "syncs" you've setup so that you can run them again and again when you need to.

The download page says:

SyncToy, a free PowerToy for Microsoft Windows, is an easy to use, highly customizable program that helps users to do the heavy lifting involved with the copying, moving, and synchronization of different directories. Most common operations can be performed with just a few clicks of the mouse, and additional customization is available without additional complexity. SyncToy can manage multiple sets of folders at the same time; it can combine files from two folders in one case, and mimic renames and deletes in another case. Unlike other applications, SyncToy actually keeps track of renames to files and will make sure those changes get carried over to the synchronized folder.

The tool has got a number of new features added from version 1.0, and I'm listing a few interesting ones:

• Dynamic Drive Letter Assignment
• True Folder Sync
• Exclusion Filtering Based on Name
• Filtering Based on File Attributes
• Command line enhancements: Added the ability to manage folder pairs via the command line interface.
• Sync Encrypted Files
• 64-Bit Support

SyncToy is built upon the Microsoft Sync Framework, which seems to get better and better all the time. Worth keeping an eye on for everyone involved in developing applications which requires replication or off-line modes.