OK. I realize that there are several posts to try to solve this problem except that none of the solutions work for me. I have searched all of them. I've even tortured jibi privately about this.

The desktop software gets stuck at "working" even though "connected".

I have tried the following (all at least 3 times):
1) Clean reinstall of both desktop and handheld software (4.0)
2) Removed RIM folders everywhere
3) Battery removal
4) Mail profile change
5) Clean wipe of handheld

I have been able to connect with the software on another computer and everything works fine on that one.

Try a different USB port. Also, if connected through a hub... don't. I've seen more weird anomalies with devices when connected via a hub. Try disconnecting other USB devices on that system to see if it does anything differently.

Tried USB reinstall still no joy. I'm not making this up as a ploy for attention.

Is this just a ploy for attention?

When you say removed RIM folders everywhere, do you also mean from the registry?

Also, please give some more details about the PC that isn't working, OS etc.

Office 2003 on Thinkpad T40. Windows XP Pro SP2. This was working before the upgrade to 4.0.

From registry and everyewhere that directions noted in order to perform "clean reinstall"