Yes, the briefcase support is sort of limited in its capabilities.
You can look forward to better file synchronization with Windows Vista.
For now, I'd recommend you take a look at SyncBackSE (
http://www.2brightsparks.com/syncback/sbse-features.html ) which is what I've used on Windows in the past.
[edit] There are also many other third party synchronization applications which you can find via Google or CNET Downloads