HTC Hero :: USB Connected And Mounted But Sync Disconnected

I have done a search and found problems of people cannot mount and are not connected. However, my prob is different. This is my second PC to attempt with same problem. I dl HTC Sync and connect with USB cable that came with phone. I get the USB icon on the top of Hero but HTC Sync says disconnected. When I bring down the USB icon and press Mount I get a "Removable Disk (E" popup. The options at this point are: Copy pictures to folders, Use slide show of images, Print the Pictures, Copy Disc, Play, Play Video Files, Open Folder to View Files, Take No Action. This tells me that the PC is reading my phone, however, HTC still says disconnected. Do I select one of these options in order to be connected on Sync? My goal is to update the firmware.