Let me update my problem. I installed the outlook 2003 update and installed the conduits. I am using Desktop 4.1.2 and Hot Sync 4.0.0. upon changing to Outlook, my problems began. I just changed back to Desktop conduits (via the Palm CD that came w/ my Tungsten E). I was able to sync via the USB cable. When I try to Hot Sync via IR, my palm shows the following message: Unable to initiate HotSync operation because the port is in use by another application. My computer IR does indicate that another computer is near when my palm is in range. However the HotSync operation will not work via IR.