I wrote this for the Olympus VN-3100PC although it may work with this device as well.
Try this:
This problem can typically be solved by unplugging the device from
your computer's USB port and plugging it in to another USB port on the
same computer.
Also be sure you have Olympus Digital Wave Player installed and open with your Transfer Options set to Auto Transfer. To do this, follow the steps below:
Open Digital Wave Player > select Transfer from the menu > select Transfer Options > under Auto Transfer, check the box which reads "Transfer all audio files after detecting Recorder."
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