I have identical problems syncing at work with MfE to Outlook, even when trying to sync the device to m.google.com I get this communication error. My own and my girlfriends phone show the same problem.

Software version says;21.2011.38-1

@SpRoOoOo
I hope I'm not stealing your story here, so please let me know if there's no relation. It would help me if you checked syncing to gmail works for your device.

Thanks,
Bill