I was able to get it working by doing the following:
1. Archive old items
2. Backup database on MAC
3. Compact Database and replacing sever version with backup
4. manually move database to iPad (via iTunes)
5. reenable sync on iPad
I gave full instructions in this thread, which is the one that gave me the idea to manually move the database over:
http://forums.omnigroup.com/showthread.php?t=29105
Hope this helps! Certainly got me up and running again.