My Kobo touch was not detected anymore by Calibre and I also had the log 'DriveError: No removable drives found'.
To fix it (on Windows 7 64 bits):
- connect the device to a USB port
- double click Control Panel/System and Security/Administrative tools/Computer/management/Device Manager/Disk drives/<device disk>
- change the removal policy from "quick removal" to "better performance"
- reboot ?
Now the device should be seen by Calibre (and you also need to eject it before disconnecting ).
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