When you view the Bluetooth partnership properties for your phone in the PC, the Active Sync box should be checked.
On the phone, the Bluetooth partnership for the PC should also have ActiveSync checked.
I can't explain why your phone won't finish syncing. Guessing it's a problem with your specific configuration having some program installed that's interfering. Whenever these types of problems crop up, best thing is to do a hard reset rather than spend more time trying to figure out why it won't work. Either that or try setting up with another PC (preferably running Win XP).