Much and many thanks to the four of you who took time to write your suggestions and thoughts. Not one of you agreed - that's the great thing about genius, gentlemen . . . you came at it from 4 COMPLETELY different angles!!
Opinions ranged from a Brayder "F-Up" to a desktop problem or scrambled file. Mooseman suggested I try tools - which was brilliant -- I fixed it but I'm not sure how, and here's how if it happens to one of you:
1. Copied the Calendar DB, 24k, to a folder on the card.
2. Deleted the file in RAM.
3. Set the PC to overwrite handheld, and synced.
4. Tested by setting to "Synchronize;" went right through. No screaming, humming trees or vomit.
My theory is that TEAL LOCK encrypted/ecrypted something and botched it up. I set "Calendar" as a database to "encrypt" but rarely engage T/Lock. At some time during backup, I suspect, it either BACKED UP the encrypted file to CardBackup OR encrypted and decrypted but "with a small glitch" or corruption. This is what Telyx suspected!! Fortunately it was a RAM database, but could easily have been a ROM database as Egarc mentioned. Lucky, I guess. This corrupted file was backed up and RESTORED after the hard reset. I'm careful not to leave TealLock on because auto-backup occurs at 5AM and 5PM. If it DOES back up an encrypted Calendar file, the next backup would DELETE it and backup instead the "decrypted" one, as all unseen RAM databases are removed before backup. Hope this makes sense. I had also defragged my SD256 card, which might have scrambled something also.
In any case, deleting it and restoring a "fresh" or "fresher" version from the PC fixed the problem. My next step would have been replace it from an older CD backup ("snapshot") from 2 weeks or a month ago, and just "re-do" the information since. I was relieved it wasn't a Brayder snafu (althought the evening's young!!) OR that I didn't have to reinstall the desktop. I TRIED THE TOOLS FIX for corrupted records and that was REALLY WEIRD . . . Palm Desktop tried to access the internet (which I allowed) . . . and then nothing. Don't know if it checked anything or not - perhaps it did nothing because nothing on the PC was "bust." I'm curious what PalmOne want to see or get to see when your Palm Desktop ACCESSES THE NET while you're "fixing records." That's a little disconcerting.
In any case that's the first "glitch" with CardBackup restore (although it could have been several other factors such as encryption or restoring from the defragged and possibly "scrambled" SD Card). I have removed "Calendar" from the TealLock "blowfish encryption list" for the time being. All is going swimmingly now and THANKS SO VERY MUCH TO ALL OF YOUR FOR YOUR EXTREMELY VARIED and smart advice(s)!! You know who you are and I have emailed you all separately - you're a cool and very valuable bunch and I'm proud to know you.