I am looking for a way to sync a folder to a sharepoint site and have the relationship be bidirectional so any updates made to folder appear on the site and any updates made on the site appear on the files in the folder. Any ideas
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Check with your IT guys who manage the farm. There is a program called SharePoint Workspace that does this very action for you. Since SharePoint libraries are more or less a dynamic "folder" you can create a link on your PC directly to the path of that SharePoint folder. In this way you can manage it very similarly to how you manage your folders and files in a traditional Windows explorer routine (drag and drop outside of SP).

Zach
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