ANother thread asked the same question without response, so I'll try:

In V3.8, you could manually resolve conflicts. Now in V4.1, it seems you are forced to either replace the item on the PC or on the PDA, but there is no choice to manually resolve any conflicts (keep conflicts unresolved).

Am I missing something?

I guess I'll answer my own question - conflict resolution is a problem in version 4.1.

I chatted with Dell, and they confirmed that with 4.1 you can only either replace the item on the desktop or on the Axim. There is no way to get the choice that's in version 3.8 to slect with conflicted item to keep.