Update Sept 22, 2011 — Friend just informed me that this also fixed an issue with Live Mail.

I regularly get an error when I take my notebook from home to work. For some reason Live Mesh chokes on network settings when I switch from a network (work) with a proxy server and home where I have no proxy server.

With the help of some searching on the windows live help sight I was able to put together a PowerShell script that will reset the services that deal with Live Mesh and restart the application.

cls
netsh winhttp import proxy source=ie

Write-Host "Restarting Windows Live ID Sign-in Assistant"
Restart-Service wlidsvc -Verbose
$srvName = "wlidsvc"
$servicePrior = Get-Service $srvName
$srvName + " is now " + $servicePrior.status

Start-Sleep -Seconds 2

Write-Host "WinHTTP Web Proxy Auto-Discovery Service"
Restart-Service -DisplayName "WinHTTP Web Proxy Auto-Discovery Service" -Verbose
$srvName = "WinHTTP Web Proxy Auto-Discovery Service"
$servicePrior = Get-Service -DisplayName $srvName
$srvName + " is now " + $servicePrior.status

Write-Host "Starting LiveMesh"
Invoke-Item "C:\Program Files (x86)\Windows Live\Mesh\WLSync.exe"