iPhone configuration utility error "kAMDPermissionError"

I'm getting the following message when launching the iPhone Configuration Utility on Windows 7:

"iPhone Configuration Utility has encountered an unexpected error from your mobile device. Error: 'kAMDPermissionError' "

I'm using version 2.1.0.163 of the ICU on Windows 7. It's a newly activated 3GS iPhone. I click on ok to the error and the phone doesn't show up in the configuration utility.