After testing iFolder open source for a while yesterday, I find it too
unreliable to use. I'm constantly getting the 'n files not synchronized'
error. I read the FAQ on that and as often as it comes up I can't be
having users constantly going into there and seeing that is stopping it up.

So, I'm looking to go the OES route (if there are no other suggestions, I'd
much rather go open source). So 3 questions:

Does the OES version of iFolder save the files on the server is an
encrypted way (like 2.1 does) or is it the straight up files like the open
source version does?

If the files are unencrypted, is it safe to edit files that are on the
server directly (like share that folder so local users can use the files)
or will that confuse things? Direct editing would be the best, but I
suppose I could put the iF client on another system and make that be the
"server" for the local users.....

I would probably run OES in VMware Server 1.01 inside a Windows 2003 SBS
server, add ram and some disk. Can I get away with 512MB in the VM?

Thanks for any suggestions. I need to find something that works soon. :)