When all is said and done, to windows 7, your Kindle is just a USB Drive.
If it connects fine on another computer, here's a possibility. without being connected, start, right-click computer, and go to Manage. Go to Storage, Disk Management, and take note of the drives you currently have (so you hopefully recognize if there is a new one when you do connect the Kindle).
connect the Kindle, and refresh that screen. If you get a new drive, confirm it has a drive letter; you may need to right-click that new drive (if you get one) and give it a different drive letter. If you're lucky, Windows 7 just got confused about what drive letter it should assign.
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