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I also had a problem with AS. I had Alwaysbelieve's 3.5 installed btw. I got a laptop from work and would not connect for the life of me. I thought it had to do with the VPN software so I messed with my firewall connections, re-installed AS, different versions, etc etc. What was weird was that the phone would connect on the first time set-up only. When I disconnected the phone and placed it back on the cradle, it would not connect and stop working. I went ahead and installed the nice and clean 3.5 and re-installed AS again and it worked! I have not had any problems connecting or syncing since then.
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