Looking at the current-sync.xml file after publishing a project to the web folder shows links to jpeg files that were not created.
Example from current sync file...
<name>Timbers_Plasma.jpg</name> <size>287688</size> <hash method="sha1">9800e0766c87ac52001fc211baddc1a32e04ab8f</hash>
<link>http://xxx.xxx.x.xxx:8080/Timbers Steakhouse//pool/8/f/sha1-9800e0766c87ac52001fc211baddc1a32e04ab8f</link> <headers inherit="no"/> <chargeable>no</chargeable>
The link to the file was never created during the publishing process (I replaced the ip with x's). The pool 8 folder was never created. This only happened for both the jpeg files. All of the other file links were created successfully and can be downloaded.
I created the mime type entry "." Application/Octet-Stream but still have not had any success.