When Palm Desktop software is setup on a new Windows computer and HotSync is run the first time with a Palm device that has been previously been HotSynced to another computer, the message "Please enter the password for the handheld" dialog is displayed.

The reason for this is the Palm device being HotSynced has previously been HotSynced with another computer where the "Require password to access the Palm Desktop data" option was selected from the Tools > Options > Security dialog.

The password to enter for the "Please enter the password for the handheld" dialog is the one that was entered on the Palm device using the "Password" option of the Palm "Security" applet.