It seemed to work once, however, it hasn't worked since then. I've added new files to my local directory, etc. It doesn't even attempt to upload them as far as I can tell. It looks like it doesn't even detect that the files are being modified. (Or that new files have been created in the local directory)
I was using 3.6.8 but after encountering this I tried the new 3.7 beta with no success.
local machine is windows XP sp2
any ideas? It is such a useful feature.