I have the same problem, but my PC works fine with other USB devices.
The first time I've tried installing the USB connection, the PC recognized the connection and started the procedure to install de drivers. I did not follow the instructions (Accept to an error message, browse inside the Canon directory for the right drivers, etc.), so I assume the driver was wrongly installed.
I've tried unstalling the driver as the manual says (going to the Windows/Inf directory, deleting some files, etc.), and connecting the USB port with the camera on in reproduction mode, but the PC does nothing.
Anybody knows how to start all over again and have again the cumbersome messages displayed to install de drivers?