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It's not much help as I can't suggest anything more than what PeterT has but my old Kobo Wifi (I now have a KT) and my wife's Kobo Wifi work perfectly fine with Win7 x64. I would certainly re-install the Kobo Desktop software, really sounds like the driver for your K2 didn't install properly.
Things to try when installing, run the setup program as Admin, turn UAC off (temporarily) if you haven't already turned it off.
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