Instructions
Press the orange button to turn on the NXT. Flip it over and locate the reset button. You can find it near the upperleft corner.
Insert a paperclip or a pin into the hole and press the button. Do not press it for longer than four seconds or you will have to update the firmware, even if resetting fixes the problem.
Plug the USB cord into the NXT and your computer. Open the Mindstorms application on the computer. If the program does not detect the NXT connected to the computer, check the USB cord connections. You may need to replace the cord.
Click on "Tools" and then select "Update NXT Firmware." This will open a dialogue box with a list of available firmware files.
Click on the most recent firmware update and then click "Download." Wait for the download to complete, then unplug the NXT and reset it. If you still have connection issues, you may need to replace the NXT itself.