In order to correct this error message, you need to do the following procedure.  We recommend the below 8 steps first.  This is done through the Windows operating system:

1. Click on the Start Menu.
2. Type and search for ‘services.msc’.
3. You will open the Windows Services window.
4. Search for HHC7Service.  Right click on it and choose Properties.
5. Ensure that the Start-up Type is set to Automatic.
6. Click on Start, or if Start is already selected, press Stop and then Start again.
7. Choose Apply and then OK.
8. Go back to Handheld Contact on the PC and try syncing again. 

If the above directions do not work, you can also try these directions.  This is done through the Handheld Contact user interface:

1. Open Handheld Contact on the PC/Server.
2. Click on Maintenance along the top Menu bar.
3. Choose 'Restart Service'.  Choose Yes/OK to any messages.
4. Once the restart is finished, click on 'Exit' and close Handheld Contact.
5. Wait a moment and restart the HHC application.
6. Press 'Sync Now' button along the left to begin syncing.

Note: When completeing the Windows steps above, if the 'HHC7Service' is not listed and only the 'HHC7Service Monitor' is, then you will need to re-install Handheld Contact.  Go to: http://www.handheldcontact.com/downloads.php and select the matching version of ACT!.  Run the installer.  When prompted to 'Repair' or 'Remove' the HHC application, choose Repair.  Once the update is finished, go back to Step 2 of the Windows directions above and try again.