Follow the instructions given by Richard to change your camera's communication mode. Contrary to what Richard says about Canon software not communicating with an XT (350D), Your PC running win 7 will communicate using EOS utility. Mine does.
Hi Richard, When i upgraded to Win 7, I had the same problem as TopDrifter. After setting the comms mode in camera to (print/PTP), I was able to download images to the PC. And with Canon software, in my case EOS utility.