Activesync create new Partnership over and over

I have a smartphone running Windows Mobile 6.1. Everytime I connect my phone,
activesync asks me to recreate the partnership. I recreate it, it works, and
then when I shutdown and reboot the same thing happens again!

Another thing I have noticed is that when I recreate the partnership, the
location for synchronised files changes to the \documents and settings\local
settings area.

I have local admin rights on the PC. Can anybody offer any advice?