The Round Rock, Texas, company said that Axim X5 models--its first and only handheld--running Windows Mobile 2003 for Pocket PC contain a software glitch that reduces their performance on many applications.

"We are aware there is a performance issue with the Axim running Pocket PC 2003," said Jess Blackburn, a Dell spokesman. "We are working to implement a solution for our customers."

Dell found a glitch inside software it created as part of the 2003 upgrade. The Dell software was designed to work with the Windows Mobile 2003 for Pocket PC operating system. However, the glitch is not related to Windows Mobile 2003 for Pocket PC software itself, Blackburn said.

Dell will most likely deal with the problem by offering an Axim software update. It can distribute the upgrade via its Web site and also put it on a CD-ROM that could be mailed to customers.

While it works on the fix, the company will continue to take Axim orders. However, it will not ship any new Axim units or offer a planned Windows Mobile 2003 for Pocket PC software update for Axims currently running Pocket PC 2002 until the fix is available, Blackburn said.