Can't upload the blink program: Uno

I installed and reinstalled the drivers.
Tried different USB ports and cables.
I verified the correct port and the correct board in the IDE.
Operating System: Windows 7 x64
Kind of Board: Uno

The On LED stays solid when plugged in.
When I upload the sketch the Rx button blinks only, 3x, then waits, then 1x.
The IDE gives me the following message:
avrdude: stk500_getsync(): not in sync: resp=0x00
avrdude: stk500_disable(): protocol error, expect=0x14, resp=0x51

This is a brand new, never used official Arduino. Should I be looking to return it?

Verbose Output:
Binary sketch size: 1018 bytes (of a 32256 byte maximum)
C:\Users\James\Desktop\arduino\hardware/tools/avr/bin/avrdude -CC:\Users\James\Desktop\arduino\hardware/tools/avr/etc/avrdude.conf -v -v -v -v -patmega328p -cstk500v1 -P\.\COM7 -b115200 -D -Uflash:w:C:\Users\James\AppData\Local\Temp\build1894011902992817126.tmp\Blink.cpp.hex:i

avrdude: Version 5.4-arduino, compiled on Oct 11 2007 at 19:12:32
Copyright (c) 2000-2005 Brian Dean, http://www.bdmicro.com/

System wide configuration file is "C:\Users\James\Desktop\arduino\hardware/tools/avr/etc/avrdude.conf"

Using Port : \.\COM7
Using Programmer : stk500v1
Overriding Baud Rate : 115200
avrdude: ser_open(): setting dtr
avrdude: Send: 0 [30] [20]
avrdude: Send: 0 [30] [20]
avrdude: Send: 0 [30] [20]
avrdude: Recv:
avrdude: stk500_getsync(): not in sync: resp=0x00
avrdude: Send: Q [51] [20]
avrdude: Recv:
avrdude: stk500_disable(): protocol error, expect=0x14, resp=0x51

avrdude done. Thank you.

Have you tested it with the Arduino IDE?
This works on windows (7 x64 / i386), this way you can check if the board is communicating OK.

What do you mean by testing it with the IDE? I have connected pins 1 and 0 to each other and sent and received data through the Serial Monitor.

Update: I tested this on a 32bit Window XP laptop as well. Same issue. Verified the correct board and port on this machine as well.

I am not getting the same error messages, but you might want check out the links in the thread I just posted, I am also having problems under Windows 7 (64 Bit).

http://arduino.cc/forum/index.php/topic,70763.0.html