A bit of context may be necessary. With no idea what you're running, this turns into a bit of a 'shotgun' exercise. Sure this didn't start after the recent (relatively) update to Home 2.8?
Are you running a 64 bit Windows system? If so, try executing Home directly from the Start / All Programs area and not from a shortcut of any type before connecting your unit. If you don't see the failure during startup, go ahead and connect your unit and see what happens.
If you're running Vista, be sure you're running as administrator.
If on Vista or 7, try setting Compatibility Mode to XP SP3.