Yes that is correct. What is interesting is when SkyDrive was in it's early days, when it was Windows Live Mesh, had sync over LAN. However, it was removed. I believe the idea (of I remember correctly), was that if you sync over LAN, well you have the file on the cloud. Making you, unable to access the latest version or the file at all, if you go somewhere else, and access SkyDrive on the web or install the program on another computer, outside of your home.