How to use iDisk Syncing?

I've looked around and don't find any full explanation of how to use iDisk Sync.

I'd like to sync my entire Desktop, Documents and user Library folders.
I dragged those folders to my iDisk, which has iDisk Syncing turned on and "Always keep the most recent version of a file" checked.

Is this all I need to do?
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I keep getting an alert: iDisk Error:
There is a problem syncing the file "BdContactsMenuBar.menu" (and many other such files, mostly small apps that I have in a folder on my Desktop)

"The destination does not support symlinks. Try compressing the file or folder first."

I have tried compressing these files to .zip files with no change in behavior.