Thank you to Vincent Antkiewicz for this step-by-step guide!
Download the latest ROM version 3.1 from Sharp's Zaurus support website:
Unzip the file and follow the instructions on how to flash your Zaurus. You will need a compact flash card or use the cradle.
After your Zaurus is updated to ROMversion 3.10 you need to install the driver for your zaurus. It is either on the CD that comes with the AIRcable or you can download it from here. The name of the file is AIRcable_0.1_arm.ipk.
Plug in the AIRcable USB in you USB port.
In Windows XP go to start then setting then control panel, then system, then hardware tab, and then the device manager.
Go to the ports you will see a new port called COM3 (or similar). Do a right click, then properties, then port setting change the speed to 115200.
Install the setup program and install the Zaurus manager version 1.3 and Intellisync Zaurus version 3.2E.
Run the Zaurus Manager. Change the connection to "serial" and the serial port to the port number you have seen in step three. In my example its COM3.
You need to pair the the AIRcable USB with the Zaurus AIRcable. Press and hold the button for 5 seconds on each module. After 30 seconds you should see a solid blue light. This tells you that both are connected.
On the Zaurus go to the settings and the "PC Link". Set it to "serial" anc choose ok.
Fist run the program called "Zaurus file transfer" program and use will see the Zaurus internal and external folders, if you happen to have a SD card or CF card. Drag the file you want to copy to the Zaurus and you will see the red light blink telling you that the data is transferring. I suggest you move them to the internal memory and then move it to your SD card.
Note: The file transfer program might timeout on you because SD cards are very slow.