My Axim runs ActiveSync 4.1.0 and it will not sync my contacts. I've tried deleting my device from my PC and going through the wizard to set it up again, but it doesn't work. When I open ActiveSync on my Axim, I cannot select Contacts to sync becaused it is greyed out.

Any ideas on what to do next?

Have you tried a soft reset on the PDA. This usually works with my Axim.