Windows 7 Help

http://arduino.cc/forum/index.php/board,2.0.html

Read the top 2 posts!

BTW: I have absolutely no clue what a 'lilypad' is, what hardware you use to connect it to your computer and how you have wired it up.

Therefore I guess your problem is in line 42 of your code, but only if you wear two red socks!