I had this problem last night as I FINALLY got an ePod.
Here's what I have, and what I did. Hope it helps ppl.
PC - XP SP1, ActiveSync 3.7.1, Null Modem (Serial) Cable
ePod - ePod1XP Hack
"Out of Memory" msg. when trying to install / transfer files to ePod1XP Hack
-Make more memory, (slide bar more to the left)
-Downgraded sync speed on ePod to 19200
Then connected cable, and ran PC-Link w/ the 19200 connection. Don't create a partnership, select guest.
Then I was money.
This is surly old, old news, but since it took me 2+ hours to get to this point, I hope it saves someone in the future.
jsmmd / MethodicJon