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I have the 505 and 900 and installed the Sony Library software on my new Windows 7 - 64 machine last week and all works perfectly.
I don't think it is a general problem with windows 7 but possibly with your usb ports/management ... I had that sort of thing (unrecognized device) happen on laptops, desktops, etc. and generally have to go into the device manager and uninstall/remove the device/driver and reinstall it.
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