I plug in the USB cable.
Turn on the camera.
I then get an XP message asking me to associate the camera with a piece of software and I pick Picassa.
I then go to Picassa and go to the import photos section.
I also downloaded a trial copy of Photoshop Elements 6 yesterday and when I plugged the USB cable into the camera, PSE6 immediately found it.
I'm using two cameras -- LS 743 & DX7590. They're about 4 years old and I think that the C line is a bit newer. I did read in the Picassa documentation that Kodak cameras can have difficulties with using Picassa. And I have to say that after using Picassa for a bit that I would buy a new camera rather than suffer with EasyShare!
I did do a new firmware download for the DX7590 a couple of months ago but maybe they did something proprietary with the C line that they haven't bothered doing to the older cameras.
Hope some of this helps but it sounds like you're doing everything right. I certainly wouldn't put it past Kodak to have done something in the firmware to ensure that you have to stay with EasyShare.
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