After getting the new Mindstorm 2.0 software, I quickly installed it on my laptop. As I tried to download a small program onto the robot. an error message popped up and says that I must update my device firmware before I can access the device. Of course, it doesn't tell you how to do that. so here are the instructions, in case anyone else runs into the same problem:
In Mindstorm software, goto TOOLS > Update NXT firmware.
Make sure your robot is on and connected.
The firmware that comes with the CD is v1.26, select it, then click DOWNLOAD.
Note: There is a later version that is out v1.28, you can download it from http://legoengineering.com/library/doc_details/250-nxt-firmware-v128.html