OK, it seems to have cleared itself up.... I just had to keep trying till it re-synchronized successfully.

It seems to work better if the player is ON when doing the Synch rather than in standby. Not sure why...

Also, the "Checking disk integrity" step seems to take FOREVER.... of course I have a 60GB model with ~25G of MP3's... maybe thats why.

Thanks for the help. I never realized I could just delete those files and they would be rebuilt.