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Try putting phone in not Enhanced mode.

Start->Settings->Conenction->USB to PC Uncheck Enhanced.

Also Try deleting your Profile on the PC so that it does not try to do an actually SYNC. You don't need to be "Fully Synced" to do an update. Just choose "Setup Later" (or whatever it's called when you reconnect it and don't create a new profile).

I assume since you can't sync you'll be no worse off. But make sure you have some sort of backup for contacts etc.

If you DO wish to try to do a full sync first try deleting and recreating your Outlook profile sometimes works. And sometimes rebuilding your .PST file (by renaming and recreating Outlook Profile and reimporting it) fixes it.