I suggest the following steps (insert plenty of reboots of your PC...not just restarts, but full power down reboots). Also, it is advised that you be logged into the PC on an account with full admin rights. Further, under Vista, use the "Run As Administrator" option for everything.
1) Remove your device OS update package from your PC (add/remove programs)
2) Cleanly uninstall the RIM DTM software: KB02206 How to perform a clean uninstall of BlackBerry Desktop Software
I've had my Pearl 8130 for about 3 months now, and everything was working fine until last week. Now, when I try to try to sync with my Outlook, the Desktop Manager gets to "Reading from MS Outlook Calendar," then I get a message that DM has encountered a problem and needs to close. No data goes through either way. When I view the Error Report I get the following message: