1.Download latest sync tool from HTC,
HTC sync 2.04
2.Install the downloaded program on the computer. At this moment, your computer still unable to recognize the HTC Hero.
3.Manually update the HTC drivers from Windows 7, using the Vista drivers by installing HTC Sync software on a machine running Vista and then copying the drivers (androidusb.cat, androidusb.inf, androidusb.sys, htcrndis.cat, htcrndis.inf and WdfCoInstaller01007.dll in HTC Drivers folder) over to the Windows 7 machine.
Or get a friend with a Vista Machine to send them to you.
4.Extract the driver into a folder. For example, %SystemDrive%:\Program Files (x86)\HTC\HTC Driver\Driver Files\Vista_x64 (for the Windows 7 64-bit) or %SystemDrive%:\Program Files (x86)\HTC\HTC Driver\Driver Files\Vista_x86 (for the Windows 7 32-bit)
5.Go to Devices
Update the driver (accessible from Properties -> Hardware tab) for incorrectly installed Phone from the Devices and Printers menu in Windows? Start Menu, by selecting the copied driver location from above.
6.The HTC Hero phone should now displayed as ?My HTC?, and will be able to sync with Windows 7.
This worked for me.