The first time you connect the AXE027 PICAXE USB cable you will be automatically prompted
to install the software driver files.
You should not be trying to install the drivers without the AXE027 connected - otherwise the Operating SYstem will not know which USB port to configure the driver for.
I think there's some confusion over "install" which is a two part process; "installing the drivers to disk to be ready for use" and "installing the drivers for Windows to use", the second cannot complete if the first hasn't been completed. This gives three means of completing the process -
1) Don't plug the cable in. Download the AXE027 Driver Pre-Installer and run that. This installs the driver files to disk. When the cable is then inserted the New Hardware Found Wizard will automatically find the drivers on disk and install them for Windows to use.
2) Don't plug the cable in. Download the AXE027 Driver file and unzip the file. This places the driver files on disk. When the cable is then inserted the New Hardware Found Wizard will ask where those files are and once pointed to them will install them for Windows to use.
3) Plug the cable in. The New Hardware Found Wizard will ask where those files are and, as they are not yet on disk, one needs to pause, not proceed with doing anything with New Hardware Found Wizard, move the Window out of the way but don't close or cancel it. Download the AXE027 Driver file and unzip the file which places those files on disk. Once that's done one can return to New Hardware Found Wizard, continue the install which once pointed to the driver files will install them for Windows to use.
So the means to an easy life are to have the drivers installed (1) or on disk (2)
before the cable is plugged in.
If that's not done, the cable is plugged in before New Hardware Found Wizard can complete its task, one has to pause, do what one should have done earlier, then continue with the New Hardware Found Wizard.
That is not too hard to follow but this is where things can go wrong and cause difficulties later. If New Hardware Found Wizard is closed or the cable removed before driver installation is complete it may mark the cable as "Unknown Device" and will keep it that way. If running the Driver Pre-Installer I believe it requests the cable be unplugged and if part way through running New Hardware Found Wizard that may bring this about. So, once the cable has been plugged in, the Driver Pre-Installer should not be used; you've burned one of your bridges.
Under Windows XP ( and it's possibly similar with later versions ), if installation fails there's a New Hardware Found Wizard message to that effect with just an OK button presented with a check box which determines whether Windows should treat the device ( our AXE027 cable ) as an "Unknown Device" forever, or attempt to install drivers again the next time the cable is plugged in.
Unfortunately the default is "Unknown Device", so if you don't select otherwise then further insertions of the cable won't bring up New Hardware Found Wizard; it knows it's an unknown device as you told it that! You then have to jump through the hoops of using Device Manager to remove the existing "Unknown Device" or manually "Update Drivers" in order to have an AXE027 cable recognised.
The current AXE027 Installation guide requires that the Device Driver files have been placed on disk before Step 1; "Plug the AXE027 USB cable into an available USB port on your computer ... Do NOT connect to Windows Update - as you have already downloaded the correct driver files", and Step 2 selects the procedure to use if the Pre-Installer was used or just the Driver files were downloaded and unzipped.
Things shouldn't go wrong but they obviously do and we are looking at how the installation guides can be clarified to minimise and resolve problems when they do arise.