A conflict is said to occur when the same information item has been edited
on both - the device and the computer since last sync. Therefore ActiveSync
doesn't know which item needs to be replaced. Did you do editing of this
nature? Is the conflict specific to contacts that have been moved from the
sub folders using Outlook PCS?
A reinstallation of Outlook PCS should show up the "Outlook PCS" tab under
"Properties" of your Contacts folder. You will need to uninstall it first
and then reinstall it. From my experience, the folders that you have setup
for sync with the default folder will not be required to be configured
again. The folder settings are not lost upon reinstallation.
Microsoft MVP - Mobile Devices