I had the same problem on my desktop, fixed it yesterday. I’m running Win 7. First I made sure everything was up to date. I did have to install an update with a new service pack. But it still didn’t work after that.
Then I came across instructions for changing the device from MTP mode to MSC. I was a little concerned since I had never done anything like that. But nothing else had worked, so I tried it. And it worked! Go here for details on the process I followed
See the post by JeanneB on 6/25/11 at 5:32am.