Same problem here.
Just bought my N96.
VERY frustrating to have to 'confirm' twice every time there is a connection.
Also I get a generic phone pic (looks like an old 6300 - not my N96).
After spending so much for my N96 it would be nice to actually see it in PC Suite..
Yes, my N96 is using the latest version firmware. I am still wondering what to do. It worked fine on my old N95. Do you know if this problem is recognized by Nokia?