Vista - offline synch not working

I have a problem with offline folder synchronization, which worked under XP,
and is not working with Vista.

My network folder is on a network server in a SBS2003 domain. No problems
accessing the folder and its documents.

When I enable offline sychroniztion, I get hundreds of error messages (one
for each file) in the Synch Results panel, saying, "the system cannot fine
the path specified," and no synchronization occurs.

Huh? Not sure what to do, as I can find the path without any problem.

Thoughts ?