Microsoft Knowledge Base Article 307853 contains the following summary:
This article describes how to use the Offline Files feature in Microsoft Windows XP.
You can make network files available
offline by storing shared files on your computer so that they are accessible
when you are not connected to the network. If you do this, you can work with
the files the same way that you work with them when you are connected to the
network. When you reconnect to the network, changes that you made to the files
are updated to the network.
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