Wirelessly posted (HTC Touch Diamond: HTC-P4600/1.2 Opera/9.50 (Windows NT 5.1; U; en))
Could be trying to sync over music, video, and other files that take up too much space. Try manual mode like wmdunn suggested and choose only what is needed such as contacts, calander, and tasks. Try syncing and if its successful switch back to auto.
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Phones, Past to Present: HTC Wizard, AT&T Samsung Blackjack, HTC Touch Diamond, HTC Evo 4G
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