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I have found that Active Sync works best if I make sure it is closed on the Axim before plugging it in. I get all kinds of strange problems, including the one you mention, if I have active sync running on the Axim when it is hooked in.
I use the switcher bar to be sure active sync is closed. I had 2 instances, however, where it was not showing in switcher bar, but it was listed as running in the memory utility. Once I killed it in the memory utility, it started behaving again.
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