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I have had that problem with large files using the old versions (PPC2000 and 2002). I think it has to do with active sync not being able to poll the axim since it is tied up with the transfer. Not 100% sure about that part though. When I have a large file to transfer to/from the axim i put it on either my CF or SD card and use a reader. It is much faster that way anyway.
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