im not sure where its going wrong for u... but im using setool2 lite 1.08... so for me... i take out the battery, sim and memory card..... wait... then put the battery back.... then i fire up setools2.... i click identify... and they give me 30 seconds to plug my phone in... so, while holding c, i plug the phone in... and keep holding until i start seeing some action....

i think if u just hold c and plug it in after a hard reset... without anything open (just... a windows desktop)... it doesn't seem to do anything, but somethign new shows up inside device manager...