Category: Windows 7
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Registry Method

  1. Make sure that your files and folder have been synchronized. Reinitializing the cache prior to synchronizing will cause you to lose any data that isn’t synchronized.
  2. Click Start, type regedit in the Start Search box, and then press ENTER.
    If you are prompted for an administrator password or for a confirmation, type the password, or click Continue.
  3. Locate the following registry subkey, and then right-click it:

    HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\CSC

  4. Point to New, and then click Key.
  5. Type Parameters in the box.
  6. Right-click Parameters, point to New, and then click DWORD (32-bit)Value.
  7. Type FormatDatabase, and then press ENTER.
  8. Right-click FormatDatabase, and then click Modify.
  9. In the Value data box, type 1, and then click OK.
  10. Exit Registry Editor, and then restart the computer. 

Source: http://www.mgdking.com/post/How-To-Reinitialize-The-Offline-Cache-in-Windows-7