Citing quality concerns, Microsoft removed this feature from Vista. They will probably develop it and release it in a future version of Vista. It would have made it very easy to synchronize files between 2 computers running Vista.
This week, Microsoft is planning on making Vista Beta 2 more available to testers. This version still will have the P2P synchronization technology included (Meeting Space). Based on the feedback from this release, they will probably determine when to release the final version of Vista. Tenatively, it is scheduled for January 2007 as a Vista / Office 2007 release.
Since they are attempting to concentrate on “quality” with the Vista OS, it appears that they are waiting until they get it right. We will see.