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It wasn't a newly-emptied Axim - it was a hard reset Axim
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A hard reset axim has had all user files removed from RAM ... only the fresh, untouched OS remains. The registry is in original condition. How is that not emptied? It's what I meant by newly-emptied. Your now empty contacts folder on the axim ... with a recent activity date ... will replace the older files on the PC. The PC can't tell changes you meant to make from changes you didn't know you made. It just looks for changes.
If you could get your pda to look like mine, ID wise, and I'm sure it's more than just the name, it would indeed swap all your files for mine. That's what Active Sync does.