ZWC and exclude/include lists

[Chris Nighswonger]

Does ZWC honor exclude/include lists?

I have a DLE like:

foo.bar.com "C:\\Documents\ and\ Settings" {
  exclude list "C:\\.exclude
  zwc-compress
  estimate server
}

c:\.exclude includes several entries like:

.\user1
.\user2

Looking at a tcpdump of the resulting transactions, I see the exclude
list passed to the client, but the client still dumps the entirety of
c:\documents and settings.

Am I missing some syntax error here?

Or perhaps this is the purpose of templates in the ZWC?

Kind Regards,
Chris