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What's I noticed is that activesync and the dell axim x51v sets up a 'ethernet' connection via USB when you plug it into the cradle. It gets assigned a 169.x.x.x address. What might be happening is you have a subnet mask issue or a interface metric issue - where your machine is sending dns queries out on the wrong interface (along with other traffic probably).
I suggest you plug in your axim then do a route print and ipconfig /all and send that to you is folks to see.
For me, I had to open my firewall to allow the axim to connect to my pc, but I'm sure it's just a different manifestation of the same issue.
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