I'm having the same type of issue with "please connect phones !!". I installed the latest driver from samsung's website, but no avail (or yellow light inside odin). Windows makes the sound when i connected my phone. Running win 8 x64. Am able to connect to my phone and browse with no issues inside of windows.
EDIT - Figured it out:
Download the 126.96.36.199 Drivers. If it is an exe, rename it to a .rar. Then, open the file in 7zip or winrar, and extract the files. Once you reboot your device and it shows "downloading": plug in and go back to your computer. You will have to open device manager, and find your phone device that has an exclamation point next to it. Double click it, goto update driver, then browse to the folder where you unrared the packaged and allow it to install the new drivers. Repeat this step twice.