Camera and computer refuse to cooperate

I have Windows XP, IE 8, Picasa. Haven't had any major problems until now.

I tune in to Picasa, hook up the cable to the camera, turn the camera on (all as usual) but no screen comes up asking me where I want the photos to go. The USB screen does appear on the viewing screen at the rear of the camera.

Any help would be appreciated. I have rebooted and still have the same problem.

Thanks!