The disk management (method 2) is something I need to do on a pc that has lots of drive letters assigned. It sees it but I need to give it a drive letter so windows explorer can see the drive and access it.
Don't know if any of the above will help in your case.
I was having the same problem. My XP netbook would recognize it with no problem but the Windows 7 PC was just cycling it like you mentioned. It turns out that something happened to the driver in windows when I uninstalled Motorola Media Link. I just went into control panel/add a device on my pc and Windows 7 recognized it and reinstalled the driver, problem solved. I hope this helps.