You don't want to use the GnuCash PMtoQIF. You can, but no reason to.
Let's make sure you have the correct PocketMoney Conduit....
If you open the Custom settings for HotSync what does the PocketMoney conduit settings window look like?
1. Does it have options for File Type (QIF, QIF Old, TDF), Date Type, Number type?
2. Or does it only have 4 options for pc->handheld, handheld->pc,..?
If 2, then install it from my site and see if you get the version 1 of the conduit.
http://www.catamount.com/PalmApps/Pocke ... l#download