OK... how to do the Favorites trick that I just talked about in my post, "My Love Affair With Live Mesh is Getting Deeper". I originally got the idea from Adam Kinney. I am just enhancing it a bit.
Now, when you add a favorite on one computer, it just shows up on the other one.
You can do the same with photos as well. Just add your Pictures folder to your Live Mesh, and then add other members of your Mesh to that folder. Now you all start sharing pictures. I never really used the Vista sidebar gadget that shows pictures before until now, but now I start seeing pictures of relatives automagically.