Eureka!
After reading, and re-reading this post, and trying EVERYTHING listed here and in any other articles/boards that I could find on this issue, I finally attempted one thing that I hadn't tried.
I have my old B-router running as a an access point, which is plugged into my G-router that acts as a gateway. It just so happens that my laptop, the one I've been trying to sync to, connects to the G-router via WiFi, while I had my Axim set to connect to the B-router via WiFi. Well, it dawned on me that perhaps activesync has issues communicating with PCs that are connected to different routers.
So, I reconfigured the Axim to connect to the G-Router (the same router that the laptop connects to), and voila! It worked, Windows XP SP2 firewall on and everything. Such a relief. Hope somebody else is able to make use of this info. :)
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