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I had the same problem, and hope I have it fixed now. I upgraded from a Palm system and still had hotsync and intellisync installed. Once I removed these applications my Axim started syncing again.
I had uninstalled activesync, rebooted my computer, even tried several different versions of activesynce, including 4.0, and I could only get it to sync a few times before I started getting the error you describe.
Hoefully this will fix it for good.
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