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What you describe is 'normal' behavior under iSync 2 and later, Mac OS X 10.4 and later and the Sync Services framework. Implementation of this framework effectively 'unbundled' one-button synchronization. iPods—for example—are now synchronized by iTunes, not by iSync. And, .Mac Sync controls synchronization with the .Mac servers, and is configured using the .Mac preference pane in the System Preferences application.
Here is a link that explains the underlying technology:
http://developer.apple.com/macosx/syncservices.html
In order for iSync to operate in conjunction with the HotSync Manager and push and pull data from your truth database to your Tungsten organizer, iSync must be running as a process—visible or hidden—when you initiate the event. You can trigger a synchronization involving a Palm device by…
• pressing the HotSync button on your cable or cradle [USB only]
• pressing the HotSync icon in the Palm OS application [Bluetooth or USB]
You
cannot initiate an event using the Sync Devices button in the main window of iSync, the Sync Now option under the Sync Services icon in your menu bar, or the Sync Now button accessed using the Sync tab in the System Preferences .Mac pane.
You should launch iSync, open the Preferences… dialog and select all three of these options listed beneath the
General heading:
√
Enable Syncing on this computer
√
Show HotSync reminder when syncing Palm OS devices
√
Show status in menu bar
This behavior will result: if iSync is active and you press the HotSync button on your cable or cradle or the HotSync icon on your Palm device, a dialog box will appear asking if you want to synchronize your Palm device. When you press the confirmation button, the process will continue and the logging function will work. iSync logs no activity if it is not running, and what little information it does log is so non-specific that it is useless as a diagnostic tool.
Because you have a Tungsten E2, you would benefit greatly by replacing the iSync and HotSync combination with the Missing Sync for Palm OS. More information about that application is available here:
http://www.markspace.com/missingsync_palmos.php