Sounds like an incorrect driver.
Is your Windows 7 64bit or 32bit OS?
Did you download the correct dirver?
Also when you mean the window on the printer, do you mean the printer itself? That little screen on it? Have you tried powering it off then back on?
Also how is your USB cable? I've previously come across USB cables that were slightly damaged and would not allow any USB device to work when connected with it.