Hey, Kludd. Sorry, I've had the problem before, but I forgot what I did. I know for sure that I didn't have to do a soft reset. I solved it playing with the USB port somehow. I do have ActiveSync 3.6 installed and I installed that USB
Patch from Dell. But I also have a USB hub that I connect to. I don't know if that will solve your problem but just make sure that you don't have the axim synced while you try and install patches or something.
Who knows. It may be as simple as taking your Axim out of the cradle, play with the USB port like change it to another port or, if you have one, put it on a USB HUB (my hub is that Microsoft Natural Keyboard Pro shown below) and maybe that will solve it.
Just my resolution.