I had an odd problem this morning... I went to backup all my critical documents to a portable WD Passport Essential USB hard drive and found that Windows 7 would mount the drive with a drive letter. In Device Manager everything appeared to be working properly. Ultimately I had to open Disk Management and assign a drive letter to the partition on the WD Passport Essential.
I guess it doesn't help that I already have two internal hard drives, two DVD-ROM/RW drives and a host of USB flash drives.
Cheers!