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I had that problem. New USB device found: Windows Movile Device. After clicking yes, next, next etc I got to a sreen that said "Windows found the drivers for this device but are designed for Win95. You may need to contact the publisher for a newer driver".
Not exactly those words. I was running XP SP1. The problem as it turned out was a bad registry entry that said I was running XP SP5. Which dosent even exist. When I set the reg value back to its proper number Activesync installed and the driver was loaded just fine.
But anyway, you never mentioned what you did when you got the notice a new USB device was found. Did you follow the steps of the hardware wizard and follow through installing the device? Or were you literaly asking what to do?
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