|Your information is not specific enough.|
Using Automatic Updates or installing only the Critcal and Security updates for XP from the Microsoft Update site usually does not affect devices, but if you elected to install updated drivers for any hardware or your printer, I do not recommend you do that - many people have reported problems with those - update the drivers using the proper procedure on the manufacturer's web site if you need to update drivers - if you are having no problems don't try to fix what ain't broke.
If you search the HP site in Support and Troubleshooting using Photosmart 7350 and look for the EXACT message you are getting you may find the answers you need.
Computer is not connected. To save photos, connect printer to computer. Press OK.
Communication error. Check computer connection. Press OK to continue. The printer cannot communicate properly with the computer. A driver may not be working or a cable may be loose. Ensure that the USB cable is securely attached to the computer and to the USB port on the back of the printer.
If the hardware is secure, check to ensure that the driver is installed.
Ensure that the card reader icon is displayed next to the clock in the lower-right corner of the screen.
Ensure the printer is connected directly to a USB port on the computer or through a powered USB hub.
If you DID install drivers for the printer with Windows Update,
the first thing you should have done is to try to roll back the printer drivers to the previous version.
You could try that now.
Whenever you install drivers for the HP printer, you must follow the proper procedure - e.g. you may have needed to Un-install the previous drivers BEFORE you tried to install them again.
In addition, HP drivers often do not Un-install cleanly - a lot is left behind on the hard drive and in the Registry, and if that is where the errors are, the errors will still be there when you re-install the drivers. You may need to find and use a HP utility that will clean up what the Un-install leaves behind, then re-install the drivers.
"Windows "found new hardware" coudn't do USB or Dot something."
Again, useless information unless you quote the exact error message.