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ive been having this issue for a few weeks now. ive been on the phone with the customer service. from what i understand its an ongoing problem with windows 7. i suggest calling the help line ASAP!! ive been emailing and calling Griffin Dennis at Inventables.
One thing you should also try is if your laptop has more than 1 USB port move the cable between them. I have a Lenovo T430 running Windows 8.1, the “unrecognized device” balloon appears when I plug into the USB on the side, when I use the rear USB it works fine.
Interestingly it’s the USB that is yellow, meaning it’s hot even when the laptop is closed, so perhaps it’s a voltage thing…
In any case, try all the USB ports before you decide to throw the thing across the room.
Can you connect the laptop to any other usb device (i.e. printer, etc.) using the cable and usb port you’re using for the xcarve? Eliminate the fact that the usb port may not be communicating with other devices first before suspecting the arduino setup in Windows 7 64. I run Windows 7 64 without a problem.