Go to Settings/USB Mode, change to MSC, drag and drop.The other mode, MTP, needs Windows Media Player 10 or 11 installed on your computer.
WMP 9 won’t work with MTP.
Arcsoft Media Converter is ancient history. Get a newer version through the updater or here.
Vids and photos must go through Media Converter. But it’s still not so hot. You can also try Rhapsody software. I forget which USB Mode is needed–probably MTP.
I don’t think the v1 will read videos from the card, only the internal memory. I’m not sure about photos, but I think that the same too (internal memory only).
Of course if you install Rockbox, I believe videos on the card is supported. It’s been quite a while since I played with it, so I could be mistaken.