Apple Support was not able to find a solution. Having an older Snow Leopard Time Machine Backup of my machine I searched for iSync in the Applications Folder, copied and pasted it to an external HD, and then copied and pasted into the Applications Folder on the Mac running Lion.
Opening the iSync folder allowed me to set the parameters that I wanted and upon the next sync the hoped for warning message popped up as expected.
[crarko adds: I haven't tested this one. I thought there was a previous hint about this but searching yielded none, so here it is.]

