Actually, remote and delete propagation will work, but only from client -> database. Synchronizing deletes/renames using Get dialog will not work (propagation database -> client) as it requires new functionality in the provider.
Another thing that will only work halfway is getting new files added in the database for web projects. VSS 6.0 has no capabilities of enumerating new folders in the database through MSSCCI functions used by VisualStudio; synchronizing new file additions will only work in folders that already exist on the local disk.