Here's what to do to get it to work:

Right click on Computer 
Go to Properties 
Click on Device Manager 
Right click on the Unidentified Device 
Go to Properties 
Go to the Drive tab 
Click on Update Driver… 
Browse my computer for driver software 
Let me pick from a list of device drivers on my computer 
Microsoft Common Controller for Window Class 
Xbox 360 Wireless Receiver for Windows Version: 2.1.0.1349 [8/13/2009] 
Update Driver Warning 
Click Yes


Synch the controller and USB dongle by pressing the button on the dongle, and then pressing the small radio button at the top of the controller.


http://support.microsoft.com/kb/933710

 Install the Xbox Receiver software

Before you can use wireless accessories with your computer, you might need to install some software on your computer. If you have the installation disc that came with your Xbox 360 Wireless Gaming Receiver, you can install the software from that disc. If you do not have that disc, you can install the software by downloading it from the Internet.

To install the software from disc

 

  1. Insert the installation disc into the CD or DVD drive of your computer.

    If the Setup program does not automatically start, change to your CD or DVD drive and run the Setup program.
  2. Follow the steps in the wizard to install the software.

    Note You might be prompted to restart the computer.

 

To install the software by downloading it from the Internet

 

  1. Go to the Downloading Gaming Software section of the Microsoft Hardware Web site by following this link:
  2. In Select type of product, select Controller.
  3. In Select your product, select Xbox 360 Wireless Gaming Receiver for Windows.
  4. In Select your operating system, select the version of Microsoft Windows you are using on your computer.
  5. In Select your operating system language, select the language used by Windows on your computer.
  6. Click Go.
  7. Click the link to start the Setup program.
  8. Click Run.

The Xbox 360 Accessories Setup program installs the necessary files to your computer.