I hope someone can clairfy this issue because I too have that same problem. This is the 3rd computer that has had this issue. A home computer, and 2 brand new IBM T42's. Ive tried both 3.7 and 3.8. It works in the morning, then the next time you cradel it, I get the message below.
Unable to connect to your mobile device. It is not compatible with the version of Microsoft ActiveSync currently installed on this desktop computer.
It will sometimes work if I soft reboot the Axim. Then if that doesnt work, I need to reboot the laptop. Its VERY ANNOYING doing this 15-20 times a day.