I too am having the problem described here, failed install of palm desktop 4.0 around file number 450 or so. I get the same failure for desktop 4.1. The last file displayed is "Palm Hotsync".
I am running 10.1.5. I had been running Palm desktop 2.xx under OS 9 emulation, but was finally getting around to moving up. (yes, I know, I'm quite behind the times).
Any ideas on how I can get past this install problem? For I am now stuck without anyway to hotsync, unless I go back to the 2.x level of the desktop.
thanks