Now 2 of us are having the identical problem, that of strange folders appearing in our offline files and folders.
We have a directory on the server (2003) for each user that stores my documents. This is mapped as drive 'P', and My Documents is directed to this. The folder is set up as an offline folder so users can access files at home.
Previously both users were on win 2000, but have just had Win XP note books. Since then, folders like with names like this...
BvYwlvYwuvYwevYwovYwtvYwtv....... (with folders with similar names appearing inside them.)
have been appearing in this folder. (I've put a small shot as an attachement)
If you delete these folders, they seem to reappear. And even if they aren't visible online, when shutting down or synchronising, an error comes that they can't be made available offline.