I had the same problem. My Verbatim IS500 said "Scanning" on the display and no matter what I did, it wouldn't change. I plugged it into different USB ports on different computers, but it wouldn't read properly. Then I discovered the problem--the USB to Mini-USB cable I was using (which, by the way, is fully functional with other devices). When I found and switched back to the original cable provided with the device, it worked perfectly! So try to find the original cable--perhaps Verbatim has a proprietary connector or a slightly different fit than other commercial cables.