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Initial hotsync failing

Please Help!
I just bought a new Prism and am very frustrated. I charged the unit and tried to install but when I get to the part where it says to synchronize it messes up. It starts with "Identifying user" then says "cleaning up" and then I get the error message that say that "some of the data was NOT backed up". Nothing has transferred, it hasn't even synced the user name. Handspring's website has been no help. I've "reset, reinstalled, reset user, and unplugged all other USB devices".
Any input is appreciated!
Thanks