I had a similar sounding situation with my Nexus 4. For me it was an issue with the drivers Windows was installing automatically. I followed the instructions in [Q]Computer won't recognize phone? - Post #8. I had some slight differences on Windows 7.
For me I,
Good luck!
Just to confirm a previous comment. I needed to switch my connection to Camera (PTP) mode in addition to enabling Developer options and then selecting USB Debugging from the newly appeared Developer Options.
To enable USB debugging, go to settings, about phone and then at the bottom tap build number seven times. This will enable the developer settings where you can enable USB debugging.
To fix/install Android USB driver on Windows 7/8 32bit/64bit:
<sdk>\extras\google\usb_driver\
.)If it still doesn't work try changing from MTP to PTP.
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