Here's what worked for me.
Exit from Calibre.
Plug in K3 and wait. You should get a popup that say Win7 is finding a device driver, and then the pop-up that asks what you want to do will open. Make sure that there is not a check in the box that says "do this every time". Close that window.
Using the triangle on the lower right of your taskbar (show hidden icons) choose the one for ejecting a device and then unplug your K3.
Now start up Calibre (make sure you have a recent version). Plug in your K3 and wait. When the popup window asking what you want to do appears, close the window with the X in the upper right corner. Give it a minute or so, and you should get a new "device" icon on your Calibre toolbar.
Hope this helps
cheers
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