The E2 has Bluetooth as well as IRDA which you can sync with. I just had such an issue and it turned out my USB cable had failed... Lucky me that my bluetooth was ready to pick up the slack.
I've blown the dust off of my Tungsten E2 Palm and I am having the same trouble as I had when I put the thing away. It will not HotSync with my Compaq Presario laptop. I have the software installed and it is working great. The connection between my computer and the PDA via the USB port just isnt recognized. The hotsync program does not even open up or recognize when I connect the USB cable. I am running Windows XP on my Compaq. I have tried all of the troubleshooting steps on the Palm site which don't work; but only rarely in the 3 years have I had this has it been able to sync. Now that I really need the thing it is irritating. Any thoughts?