This sounds like an issue with your settings. I'm running office 2007 ultimate as well and don't have any problem with any of the components synching. I'm running the latest DM version (5.0.1) as well. I'll take a look tomorrow to see if I can find where the settings are for this. Though I don't recall ever having to change anything when I set it up originally. Have you called tech support yet? They might be able to help as I'm sure you aren't the first to run into this issue.
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all I am trying to do is sync my contacts .. and when I try it goes as if its going to work then does nothing and nothing has updated and no error message either. Its the weirdest thing!