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Here are several things for you to check.

Make sure the SkyScout is turned off when you plug the USB cable in.  Once plugged in, turn on the SkyScout. 

Make sure (via the Windows device manager) that the SkyScout drivers are properly installed.  This is a very common issue.  Right click on  My Computer-Properties–Hardware-Device Manager-USB Controllers. Is SkyScout listed? If the drivers are installed, try the following:  Connect the USB cable to the SkyScout, but don’t connect it to your PC.  Power on the SkyScout.  Once you see the SkyScout splash screen, connect the USB cable to the PC.  There is sometimes a delay between when a SkyScout is turned on and when it begins to communicate with the USB port.  It will send an initial signal on power up, then stop for a few seconds, then send another signal.  By this time the USB port may no longer communicate properly with the unit.

In Vista 32, check to be sure your firewall settings aren't preventing the SkyScout from communicating with Vista.

Pausing after power up and before inserting cable into PC will allow proper communication.  Once the SkyScout is connected, open the SkyScout upgrade software.  Now your SkyScout should be recognized.