Reyna, a Program Manager at Microsoft, ran across a post from a few months ago lamenting the fact that SyncToy doesn’t work with Windows Vista and provides this update:
We are planning another version of SyncToy for release some time this fall and it will have Vista support (and it won’t require running it as administrator). Our 3 person team is also working on other projects, so thank you for your patience!
That’s really great news, especially in light of this week’s decision to chop PC-to-PC Sync out of Windows Vista. Now if they can figure a way to make SyncToy and FolderShare work in harmony, I’ll be really, really happy.
Reyna’s comment also illustrates a point I make regularly: Microsoft doesn’t have unlimited development resources (all the cash in the world won’t buy you great coders).
Ed Bott 
SyncToy v1.4 for Vista Released
SyncToy v1.4 shipped today and you can download the new bits at the link below:
http://www.microsoft.com/downloads/details.aspx?FamilyID=e0fc1154-c975-4814-9649-cce41af06eb7&displaylang=en
In addition to some minor bug fixes, we focused on the following tasks for this release:
· Vista Compatibility
· .NET Framework 2.0 Compatibility
they still haven’t fixed the problem the application has in copy files that contain “~1.*”