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You can't synchronize catalogs via the cloud, in fact catalogs themselves cannot reside in the cloud, you'd have to download them to your PC or Mac to use them.
When you used the memory stick to transfer the catalog, the thumbnails are missing because Lightroom cannot find the photos, it thinks they are in one place as determined on your PC, and they are not in that location on her PC. Please follow these instructions to point Lightroom to the proper location of the photos on the wife's PC, in particular see Figure 4. Adobe Lightroom - Find moved or missing files and folders
The whole idea of synchronizing catalogs between 2 PCs can be done via putting the catalog and all photos on an external HD and then move the external HD back and forth between computers. All other solutions have serious drawbacks.
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You could try logging into Adobe Photoshop Lightroom through a web browser, create collections and upload your originals to the Cloud.
Providing you are logged into CC on your PC and ensure you're, through the CC application (although I can't remember under what menu it appears) logged into Lightroom Mobile, then the files should sync back from the Cloud to the Lightroom/Mobile Uploads folder on the PC.
I may not be the 'proper' way of doing things but may be an option (and probably best to make sure the photos are backed up elsewhere also).
Thank you I now have it working.
Thanks for taking the trouble to reply.
I have followed all the advice given and learnt quite a bit in the process.
Have it working the way I wanted it to now,