I think I have discovered why or under what circumstances this

Here's what I found:
(iFolder location -> E:\iFolder) + ('My Documents' location -> V:\My Documents) = data on the server is CORRUPTED

(iFolder location - E:\iFolder) + (My Documents location - C:\My
Documents) = data on the server is OKAY

It would seem, that despite the fact that my iFolder is NOT in 'My
Documents' folder that it somehow still looks at the location of 'My Documents' and if it points to a network drive you will end up with
CORRUPTED data on the server.

I hope this helps others having corruption problems:)