After upgrade to 8.1, SkyDrive had to re-sync files from SkyDrive to local storage (despite them being there already but now under a folder called SkyDrive.old). The sync process has stalled - showing 2418 files to download. I can't seem to get past this message. How do I resolve it? Some of the files actually seem to exist on local storage that it claims to be trying to sync.
The basics:
  • Surface Pro
  • Latest updates
  • Skydrive (Build 17.0.2015.0811)
  • 10 GB of storage (7 Free plus 3 store bonus)
  • All file are synced (no selective sync)
The issue:
  • The size on my local hard drive is very different than the size taken in my SkyDrive online folder
  • The local  disk is measured as 6.25 GB
  • The size online measures 8.7 GB (10 - 1.3 GB; see picture)
That's a significant gap. I can go with a cache and hidden system file or two, but a 30% difference isn't ok.  Any thoughts?
Is there a known method (rather than a product or official support solution) to encrypt the local storage of SkyDrive data on your computer while leaving the cloud storage unencrypted to retain the full functionality of web based access without needing to decrypted data when using a public computer (eg. web apps and SkyDrive synced across other non-windows platforms)

I want to have my SkyDrive data synced to my personal PC and Mac with the requirement of having personal SkyDrive data accessible from my work computer while ensuring privacy from system administrators.

Please do not reply by posting links that do not address a direct solution. (Protection against unhelpful official Microsoft Support replies)
OK, now I've been able to set up WLM 2012 on my Win 8 computer, and I've set up the local storage folders just the same as I had on my Win XP machine. Now what's the right way to move or copy my old local storage messages on the XP machine to the new local storage on the Win 8 machine? Can I (or, should I) export the old messages to a thumb drive and then import them on the new machine? Should I remove all the individual folder names (that I just added) from the new WLM? Thanks.

ive somehow manage to delete them all ..on finding the windows live mail folder in the operating system under local  app data i have my folders listed and the subfolders but there all empty ! i see no recovery method here,are these e mails lost they go back 18 months ,operating system is windows xp with sp2 but these folders are listed as i had them but are empty.  i did transfer quite a lot of mail to local storage,so my question is are there copies on the server to help recovery,are these lost forever..ive used recuva but that's not found them either.

Previous title - All my saved important e mails i transferred to  the hardrive under local folders