I too am having the same problem. I am trying to update the ALLTEL ROM and during the process my phone get the Red Blue Green White Bars and is say USB at the bottom. But the I can hear the sound on the computer that the device disconncets. A few minutes later the same error you get comes up. I have to hit the reset on the phone and it comes back up to normal. I have the advance connection checked and unchecked. Anyone have some advice?
this is the ROM I am tring to use.
HTC TOUCH VOGUE
**UPDATE **
I just tried to update the wifes phone and I get the same result.
I have rebooted the computer several times. and I am the ADMIN
Reset the phones several times also.
Downloaded the software over.