The only thing that works for me is going to the device manager and uninstalling the phone's drivers, then plugging the phone out and back in so that the drivers can be reinstalled. I have both a 920 and a 1520 running windows 7 32 bit.
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I'm running Win7 64bit, I can't connect my Lumia 920 to my PC, it gets this error every time I plugged it in.
I have unplugged all my other USB drives, and plugging into differnt USB ports, restarted computer few times, but still can't have it connect properly.
USB Composite Device Ready to use
MTP USB Device Failed
WInUsb Device Ready to Use
WinUsb Device Ready to Use