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How are you trying to connect? When you say "the computer doesn't recognize the device", that sounds like you're doing a USB connection. If you're trying a network connection, then the iLiad is looking for a shared directory on your computer to sync with. Did you setup a directory, enable sharing/permissions, and then tell the iLiad what computer and directory it should use?
If you just want your computer to recognize the iLiad as a device (removable drive) and drag and drop files to it, then you should be using the USB connection.
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