Skydrive file availability after update

My Win8.1 Pro laptop went through a Windows update last night, and afterwards all my Skydrive files had been switched to "Online only". I switched the folders to "Make available offline", and the Modern app is showing it is syncing the files to my machine. However, in Explorer views, files are showing up as available offline, but they still have the blue sync graphic on the file icons. These files are not accessible from my computer. Attempting to launch one starts a download (contradicting the "available" label), hangs and reports an error dialog (1 Interrupted Action...Error 0x800705B4). I'm on a reasonably fast DSL connection. Also, my user profile is showing a Skydrive.old folder created yesterday morning. It's got all my files, completely accessible, but obviously any application that uses my default Skydrive directory structure isn't able to access those files. This is a PITA!