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I have the same problem and couldn't solve it yet.
My situation: I purchased a Axim X51v last year and installed AS 4.0 on a Dell PC (OS=XP HOME). They worked very well.
Last month, I purchased another brand new Dell Inspiron E1505(OS=XP MEDIA CENTER 2005) and tried to install AS4.0(also tried to upgrade to 4.1) on it. After installation and connection, the AS status window on pc was performing 'connecting' at all time but couldn't connected.
If checked with 'My Computer', I could see the 'Mobile Device' there but it was blank once open it.
Headache!
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