The owner had checked off that box "Don't ask me again." On the droids here you don't have to power cycle like that. You get to the home screen and slide your finger from the top of the screen to the bottom and tap "Select to change USB connection type."
I have a HTC MyTouch3G (the one without the 3mm head phone jack) running Android 2.2.1 (the standard OEM updated version) and after I charge with an AC adapter when I try to connect it to my PC via a USB cable, the Phone won't recognize the USB connection and only charge the phone, the only way I know how to get the USB connection to work is to power-off the phone, remove the battery for a few seconds and power it up again. Anyone else is seeing this? Anyone know if this is normal or why this could be happening? or better yet, how to fix it?