I had this problem. See this link for some excellent advice :-
http://www.ipaqhq.com/forums/showthread.php?t=8956
I downloaded a trial version of Intellisync from :-
http://www.download.com/Intellisync/...-10320673.html
I followed the instructions from the Ipaq thread to the letter and then sync'd my PC with my Axim X30 and all was ok with my contacts.
The good thing that seems to have happened is that somehow (It wasn't me!) all of the contacts on my PC have been copied from the sub-folders (four, in my case) into the "root" folder. This means that I can simply use the ActiveSync program from now on without having to purchase any more software !.
I have tested it by entering new entries on my Pc and on my Axim and syncing and it seems to work ok. Fingers crossed !!!