And on the remote site:
/var/www/site1 contains a symlink named "site2" which points to /var/www/site2.
When enabling synchronized browinsing, changing from C:\site1\ to C:\site1\site2\ successfully changes the directory on the remote site due to the symlink that has been put there.
However, when trying to enter the /var/www/site1/site2 symlink on the remote site, it successfully resolves to /var/www/site2 again, but on the local side, it tries to enter the directory C:\site2. I see why this is happening, and that it might be wanted in some situations, but I would prefer to have an option to not mirror the symlink browsing behaviour on the other panel when following a symlink.