This should be a feature of iFolder. But if I tried to change a Word
document, by adding a single char, iFolder would sync all of the file.

Well, this is probably because of Word handling it's own temp files I
thought. So I tried with txt file, with same result?
Novell states in "features and benefits" of iFolder:

Novell iFolder also accelerates work processes by only transmitting
the changes made to a file, not the entire file.

Am i missing something?