So, one more reason why I won't be "upgrading" to Win 8.x any time soon.
See if you can get it to work in compatibility mode:
http://windows.microsoft.com/en-US/windows-8/older-programs-compatible-version-windows
Another thing to try is to run the Palm software in a virtual machine.
The problem might also be limited to one method of interface. If hotsynching through a cradle doesn't work, try doing it via bluetooth.
If you still have your old Windows disks from the previous version, you could set up a dual boot. Or roll 8.1 back to 7. You would lose all of the new things that are only possible with Win 8...what were those again other than touch screens?