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To ensure that all the network folders on the machine are synchronized with the server on a regular basis, you may also set the 'Maximum Allowed Time Without A Sync'.
You may also configure Background Sync for network shares that are in user selected "Work Offline" mode.
In Windows XP, Offline Files copies the entire file from the local cache to the server, even if only a small part of the file was modified while offline.
To understand synchronization we have to understand the concepts of “auto-caching” and “sparsely-cached” files: - Auto-cached files are those files that are cached automatically when opened on a server configured to support “automatic caching”.The main reason is the client has cached the file when it has accessed to this file in read mode.Then only the difference (block of data that has changed for a file) is synchronized on a regular bases or when logon (background), logoff and Slow Link change.If you disable this setting or do not configure it, the default behavior for Background Sync will apply.This would be a short explanation on how the offline files sync works.