Phil - another thing to throw in the mix...
I have SyncDocs running on multiple machines on the one account.
I have observed that, with "Enable Google Version History" switched off, when there is a local file change on one machine, Syncdocs deletes the existing file in Google Docs and uploads the new version.
Given the size of some of the files, the upload can take a minute or so - so if you look at Google Docs during that upload period, it simply appears that the file has been deleted in Google Docs.
What I think may be happening is that Syncdocs running on a second machine machine recognises the deletion on Google Docs and then deletes the file locally. Subject to the timing, the local deletion on the second machine then may be reflected on Google Docs which then echoes the deletion on the first machine.
I don't really want to keep a version history (I have an independent service for that and I have previously found the versions eat up way too much storage in Google Docs) - is there a way of stopping the Google Docs deletion happening where versioning is switched off?
Or is there some other way you can suggest of dealing with this?