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I know this comes to late for you (already did a hard reset) however I have a fix that worked for me in the event somebody else has this problem.
Upon going to the Microsoft webpage and downloading the update to WMP, I had the same issue. What I did to fix the issue was download new skins (you can get the default or add new ones) to my PC. I found the skins by doing a search on the Internet for Windows Pocket PC Media Player skins. Install them onto your Axim using the supplied instructions from Microsoft and your fixed.
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