I do have exactly the same problem! When I delete a file at the Website of Google Drive it’s not deleted locally but renaming it works!
What does 'Mirror Google read-only user permissions locally' in the 'Files' tab mean?
Let me explain:
At home I have the regular Google Drive App installed which works properly. At work I’m using Syncdocs because I do not have admin rights.
If a file was deleted at home, it’ll be also deleted on Google Drive. If I sync my account at work with Syncdocs, it uploads the file again instead of deleting it locally. If I then sync my PC at home with Google Drive it downloads the file again. I’m in other words not able to delete files on my PC at home. If I delete the files at work, everything works fine.
This happens with all files no matter where they are stored (Root, subfolders, etc.) or if they are shared or not. At work I’m running Win 7 SP1 64-Bit.
I really like the app and are of course willing to pay for it but unless the above mentioned problem isn’t solved it’s useless to me. What can I do?