iFolder 3.8 won't sync unless client restarted on XP

I've got an OES2 test server running and have deployed iFolder 3.8 in a mixed o.s. environment. On Win7 the client updates changes on the fly as it should. On XP workstations it won't update except when the client has been started or restarted.

I'm also showing "items not synchronized" and can't find any logs showing anything not synchronized. I know that thumbs.db files won't sync but the number of items far exceeds the number of thumbs.db files in the local ifolder directory.

Anyone else seeing this xp issue?