very strange, I don't have the answer to your problem, but make sure you set up a partnership with the device (not sure about this, but I wouldn't be suprised if the tools wouldn't work with a guest connection). And make sure you have the latest version of activesync, maybe there was an activesync installer on a cd you got with the loox?
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btw, since you're able to copy files you can always compile your project and then copy it manually to the device. It's very annoying but at least you'll be able to make that deadline
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