Just checking back in....wanted to see if there is an update? I will check with another family member running a different version of Win7 this morning and a vivid to see if there is something I am missing too....
Edit and update: win7home 32bit....with HTC sync...the software asked for an update 2 weeks ago, and still works for them. Uninstalling everything on the computer, then restart and then reinstall is recomeneded...I know its been done.
Next recommendation is to find that USB connections menu. If you can't access it inside of the storage settings by hitting the menu button...then the ota may have been flawed. If you factory reset try to replace the SD card so you don't lose anything. Also by pulling the battery, then ejecting the sim card leave out for about 5 min then reset everything.....both worked for us this morning and the comp immediately recognized the phone.
Sounds like lots of troubleshooting going on...good luck and keep us updated!!!