Less then two weeks after releasing the new Windows Live FolderShare Beta the team has dropped a refreshed build (14.0.1329.0317) on to the web that fixes a bunch of problems users had been experiencing with the bits. According to their team blog this release should fix all known sign in and library management problems. It also improves the responsiveness of the tray application.
The Windows Live FolderShare beta, unlike the Windows Live Suite applications, has not yet been integrated with Microsoft Update and has no other auto update feature so you have to manually go to the Windows Live FolderShare website, download the new build and install it.