I've tried this on two seperate PCs, only to have the same problem (both on Windows XP and on Windows 7).
I connect the Droid to the PC, but regardless which option i select on the droid ("HTC Sync" or "Disk drive"), i have two "Removable Disks" show up under My Computer.
Double clicking either of them yields the error: "Please insert a disk into removable disk (H: (or whatever the drive letter)).
What gives? What am i doing wrong? I don't have a SD card in the droid, because every one i tried it said it couldn't access, so i'm just trying to transfer pictures from the internal storage onto my computer...