We have had several folks talking about problems with their USB devices in the last week or two. Since Update Tuesday was done recently, hopefully some change in it isn't involved.
Her camera does work on your computer?
Have you tried changing the USB port? It is suppose to cause it to load a driver for the new port.
Any chance the USB cable is bad? Do you have another device that can read your flash card, like a printer?
I don't know if it matters, but the camera is charged or plugged in? Any batteries need replacing, maybe a small one that keeps the memory alive?