I found the solution to this problem. I went in and disabled 'Advanced Network Functionality' on the USB to PC connection on the device by going to Start -- Settings -- Connections -- USB to PC and unchecking the box. I still do not know what "IcmpCreateFile failed, err = 1314" means, but this got my uesr working. Thanks for trying.
http://www.pocketpcfaq.com/faqs/activesync/usb-advanced-functionality.htm