A few suggestions to troubleshoot the problem:
1. Check your ROM version on the Axim. Update if needed.
2. Try ActiveSync 4.2. It's not as good as 3.8 but it might help.
3. If you have an alternate sync method (ie cable instead of cradle) try it.
4. Install ActiveSync on another computer and try to copy files there.
There are also some great ActiveSync troubleshooting guides on the net, I don't know if they'll help with your case but it might be good to familiarize yourself with common problems.
http://www.pocketpcfaq.com/faqs/acti...advisories.htm
http://msmobiles.com/news.php/5049.html
http://www.pocketpcfaq.com/faqs/acti...shoot-as4x.htm
http://www.microsoft.com/windowsmobi...c/default.mspx