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I'll try the reset too, but I am also having the same problem, though with a PB903. This started with the latest firmware: I've noticed however what may be a connection: if you go to the "library" view, there is a small icon (bottom left corner) going "updating": if I wait for taht to turn into "Ready", and then connect the device, it works. If I try and connect without going through the libarry screen and waiting for the "Ready", I also get device non recognised. I do not think it is Windows 7, as until the latest firmware (i.e. for a year) I had no problem connecting (same cable, same device, same laptop). But again, mine is a 903, and even with the "proceduer", it does not always work, in the sense that I have to try a couple of times.
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