EXTRA SOLUTIONS *** (After applying update):
I have been frustrated by this problem for over six months and was CONVINCED that this U3 Launcher update did NOT work with Windows 7. When I discovered that my U3 drive (after the update to 1…6.3.9) worked on some Windows 7 machines and not on others, I started to look for other causes. In fact, this update does allow your U3 drive to run on Windows 7, however, if you tried to run your U3 drive on the machine prior to the update, the following issues on your PC may continue to prevent the drive from running. The following steps got my drive working on my PC:
The following article on TechSpot shows you how to remove old USB drivers that persist on your PC long after you remove your USB drive using an application called “Drivecleanup.exe” http://www.techspot.com/vb/topic145884.html . This requires removal of all USB connections and a reboot before running the program and then another reboot. When I ran this program it removed over 20 USB drivers including four old ones related to the San Disk U3 drive.
After rebooting connect your U3 drive (make sure password protection is still turned off), however, stop the launcher from running if it starts to autorun. Go to the U3 CDFS Drive (Usually labeled as CD drive E). Right click on it and select Open. Then Right-Click on the LaunchU3.exe file and select Properties. Then select the Compatability Tab. Check to see if your machine is trying to run this file in Compatability Mode for Win XP Service Pack 2 or 3 (Odds are it is from your prior attempts prior to the upgrade). If it is, you do not want this. Down at the bottom of this same tab, click on Change Settings for All Users. When the dialog box opens UNCHECK the checkbox that says “Run This Program in Compatability Mode For:” You want Windows 7 to treat the launcher as a file that will now run normally in Windows 7. Click Apply.
Close out of everything, navigate back to your E drive. Right click and open, then right click on the LaunchU3.exe file and select Run as Adminstrator. Your U3 drive should now run normally on Windows 7. Don’t forget to turn your password protection back on if you turned it off earlier. After this, your U3 drive should start up normally as soon as you plug it in to your PC (assuming you don’t have autorun disabled on your PC).
This worked for me after HOURS (actually days) of trying to get this driver update to work! Good luck!