I have a number of machines that synchronize with SkyDrive. Last week, things went sideways and one of my machines was reporting errors and quit synchronizing. After the next reboot (which naturally fixes most issues), the SkyDrive application would initialize, trying to start processing the changes, and then do a faceplant in the form of a crash and generating an event in the event log like this:
This looks and sounds bad. I wasn’t sure how to resolve it, but it’s actually pretty simple. There is a catalog or index of everything that is synched and it is stored on each machine in a hidden location. You need to delete that file and restart SkyDrive.
After doing some searching, I found a thread on the Microsoft Help forums. It’s as simple as deleting %localappdata%\Microsoft\SkyDrive\settings\3e2972b1aa909a0c.dat. After you delete that, restart the SkyDrive client and you should be back in business.