December 10, 2007 (IDG News Service) — Microsoft Corp. confirmed that it has fixed a bug in its online file-storage and -sharing service, Windows Live FolderShare, after users reported that the service was deleting files without user authorization.

Microsoft sent an e-mail to users Friday alerting them that it has fixed a bug that may have “accidentally moved” user files from their original folders into the FolderShare Trash folder, and that users should not delete files in Trash until they ensure that they were meant to be deleted. It also advised users how to retrieve deleted files from the Trash folder.

A copy of the information sent to users has been posted on the FolderShare Web site.

In a Microsoft statement e-mailed by its public relations firm today, the company said it is working with users who have lost files to help retrieve them. It also said that another online storage service that is in beta, Windows Live SkyDrive, was not affected by the bug.

Windows Live FolderShare, which allows users to store files online and then download and synchronize them to and between different devices and computers, is currently available in beta release.

Prior to being notified by Microsoft, users last week had been posting about the strange behavior of Windows Live FolderShare, on a Microsoft online discussion board.

Microsoft also sent out a notification via the discussion board to let users know about the problem and explain how to handle it.

Even after Microsoft said that the problem with moving files to the Trash had been fixed, users on the discussion board were still reporting buggy behavior from the service. Users noted that they were having trouble synchronizing files between computers and locating directories when using the service on Windows Vista.

[Via ComputerWorld]

I thought people should know about the bug with live file sharing services. In case something goes wrong with your Vista system.