Hi Sue, I removed your email address because we have a large spam problem.
"unable to initiate hotsync operation due to system error"
I assume it says this on the device, not on the Computer. I also assume that a soft reset does not fix this. Am I correct so far? How about a reboot of the machine?
Are you using Windows XP or Vista?
if so right click "My Computer" and choose Manage
Go to device Manger
Plug your Device into the hotsync cable. Do you see "palm Device" listed?