To those interested.
I followed the steps outlined by HP/Compaq support.
I did a hard reset of my 3955. That made my USB port again available for syncing.
I restored my backup did a soft reset, placed the computer in the cradle to sync up and immediately received the Error 604.
I did another hard reset and then synced up with my serial port to see if that made a difference. Same results after restoring the backup.
This led me to believe that this was a software problem (ie application issue, or maybe some kind of PDA virus.
I copied my data files out to my desktop machine. Performed another hard reset, and then reloaded all my applications. I then copied the data files back to my PDA.
So far no problems.
If no problems occur for the rest of this week I will use this as my new backup.