Here's what's going on. Palm built a bad installer. Sony Clie users (which I used to be) have wrestled with this for some time but the newer Palm units use the same new variant of the Palm OS and the same broken installer.
The problem seems to affect users of the Windows Media Center variant of the OS as well.
I wrote a post about this not too long ago after I got a new Treo 650 and ran into this bug again:
"Windows XP Tablet PC Edition not supported: Please note, palmOne does not support the use of Tablet PC editions of Windows (more). The information below is provided on an as-is basis. No further support is available via email or phone when using Tablet PC editions of Windows to synchronize with palmOne devices."
I am very unhappy about this. I shall be writing to palm. My installation of my Tungsten T3 went through in the end after working it out myself (a very frustrating experience). When I came to the treo650 which was the replacement for the T3 I had problem after problem with crashes etc. At the time Palm technical support had not made the decision to make it clear that they would not support this OS. To announce it AFTER Palmone owners have bought products on the assumption that they would be getting support even though they have the tablet o/s is in my opinion not good customer service.
I'm already very disappointed that versamail 3.0 will not sync my outlook inbox to the treo 650 so this news of withdrawing support for my toshiba m205 is not good at all.
I am synching and it does work most of the time - a bit buggy at others. Just great knowing I can't ring for any technical advice whatsoever....