I just got the solution from Audible support. It’s similar to the solution used for the Clip Sport: the drive letter assigned by Windows to the Clip Jam needs to be changed from the default.
Instructions for Windows 7:
With the Clip Jam connected to the computer, select Control Panel -> Administrative Tools -> Computer Management
In the Computer Management dialog, select Disk Management in the left hand pane.
One of the disks will be the Clip Jam. Right click on it and select “Change Drive Letter and Paths…”
Select the current drive letter and click on “Change…”
Assign drive letter B: to the Clip Jam (assuming you don’t already have another device there, e.g. a floppy drive)
Under Audible Manager, in the lower right pane where it says “Sansa Clip Jam,” make sure that the “Internal” radio button is selected. With the new drive letter assigned, you can then activate the device.
Good luck!
