to get the PC to recognize the wm5 ppc open your device manager (start, control panel, system, hardware, device manager) and look around you will find the broken device (check usb controllers for unknown device etc) just right click and uninstall it, disconnect the ppc, reboot the pc. once the pc comes back up reconnect the ppc.
for the original error try installing the Office XP SP3 (
http://www.microsoft.com/downloads/d...DisplayLang=en) and then run windows update to get newer outlook xp updates not included in sp3.
also if you are running a firewall be sure to check out the microsoft activesync troubleshooting guide (
http://www.microsoft.com/windowsmobi...c/default.mspx)
make sure you have the auto sync set to manual as well just for good measure ;) (see sticky - fake server trick)