It will connect easier in MSC mode, rather than MTP. What mode is best depends on how you use your player. If you ‘sync’ your music with Windows Media Player, or have a subscription service like Rhapsody or Napster, then you’re stuck with MTP. Otherwise, MSC is much easier. Your computer sees your Clip as just another storage device with a separate drive letter.
Do you have USB 2.0 ports? If not, that could be the reason behind the msg. you’re getting. I believe there are adaptors now that you can get to convert 1.0 to 2.0.
If you do have 2.0 USB ports, but are still getting this message and have problems connecting, make sure you are trying the back ports (on a desktop). They are connected directly to the motherboard and put out more juice, so connections are easier and more reliable. If you’re using a laptop, make sure it is plugged into an AC outlet at the time, otherwise it most likely won’t provide enough power through the USB port to establish a data connection.