I'm having similar problems on 2.1 discussed here : http://androidforums.com/htc-hero/131766-pc-cant-detect-hero-phone.html

But check settings and dirt in connector of phone.

 

Sorry, I don't remember, But I belive it was hidden under some other menu option...

 

I'm having the exact same problem. Has anyone found a solution? Also, when I remove headphones from the device it doesn't update; it keeps thinking they're still plugged in until I turn the unit off and on again.

If this is a hardware issue then they really need to sort out their sockets!

 

I had the same problem: charging but no other USB functionality. The cause was dirty contacts. I fixed it by putting a few drops of iso-propyl alcohol in the connector, and then connecting and disconnecting the USB lead several times.

 

I was having trouble with mine since the 2.1 update but just fixed it now by uninstalling and reinstalling HTC Sync. It installed with no issues and each connection type works including the internet sharing which is what I'm using now as I type this on my laptop that is connected to internet through the Hero. Yay... now I can get rid of EasyTether which I loved (wish I wouldn't have upgraded that which cost me $10 though) Oh well I'm still happy

 

setting>SD card & phone storage> un-mount SD card and re-mount it.

works for me.

 

In my nexus 7 I could fix it by

Go to Settings -> Storage -> click on menu (3 dots at top right) -> USB Computer connection -> Check the option, Media Device (MTP)

Enjoy