Tgray, check your BES MDS log, and if you find something like

<MDS_BBTIM01>:<INFO >:<LAYER = SCM, EVENT = Unable to load external DTD, schema, or entity source [null,http://www.blackberry.net/go/mobile/profiles/uaprof/8700/4.1.0.rdf]>

then the problem is MDS being unable to properly connect a handheld profile file.

We have having similar problem with our 8700g, but no solution yet.

Andrey