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I had the same problems, even tried uninstalling Outlook, WMDC, and Vista. The solution that worked with Outlook 2007 was to run the Office Diagnostics tool under the Help menu in Outlook. It detected one problem on a clean install of the OS, with Outlook and WMDC laid down directly after the OS install, all while using a brand new Axim X51V... Fixed my synch issue, hope this helps!
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