Not able to Upload sketch on Arduino Nano v3.0 ATmega328

Hi. I am new to arduino programming.
I tried the troubleshooting and updated my FTDI device driver. Now a USB serial port COM7 appears only when I connect the arduino board to my Windows 7 PC.
I changed board and port setting under tools menu, to Arduino nano and com7.

I am trying the Blink sketch from examples, in the Arduino IDE. I am stuck with the following output:

Sketch uses 1,030 bytes (3%) of program storage space. Maximum is 30,720 bytes.
Global variables use 9 bytes (0%) of dynamic memory, leaving 2,039 bytes for local variables. Maximum is 2,048 bytes.
avrdude: stk500_getsync() attempt 1 of 10: not in sync: resp=0x49
avrdude: stk500_getsync() attempt 2 of 10: not in sync: resp=0x4e
avrdude: stk500_getsync() attempt 3 of 10: not in sync: resp=0x45
avrdude: stk500_getsync() attempt 4 of 10: not in sync: resp=0x20
avrdude: stk500_getsync() attempt 5 of 10: not in sync: resp=0x44
avrdude: stk500_getsync() attempt 6 of 10: not in sync: resp=0x45
avrdude: stk500_getsync() attempt 7 of 10: not in sync: resp=0x56
avrdude: stk500_getsync() attempt 8 of 10: not in sync: resp=0x49
avrdude: stk500_getsync() attempt 9 of 10: not in sync: resp=0x43
avrdude: stk500_getsync() attempt 10 of 10: not in sync: resp=0x45

Please help! Thanks a lot.

A lot of Nanos seem to have counterfeit FTDI chips. Perhaps even genuine Nanos (which were manufactured by a different company than other arduinos.)
FTDI/Microsoft have apparently pushed a NEW FTDI driver that breaks counterfeit chips. (This is a DIFFERENT "new and mean FTDI driver" than the last time they did this. Instead of "bricking" the chips, it only breaks at the driver level.)

(sigh.)

Hey,
please perform the loopback test described in Loop-Back Test Instructions - Installation & Troubleshooting - Arduino Forum to confirm if you have a fake FTDI chip. You will read back "NON GENUINE DEVICE FOUND!" if so...

If you have a fake chip, download and extract this driver:
http://www.ftdichip.com/Drivers/CDM/CDM%20v2.08.30%20for%20Windows%208.1.zip

After that, go to your device manager, select your "USB Serial Port (COMx)" and reinstall the driver by manually selecting the location from the download (selecting ftdiport.inf).
Do the same for "USB Serial Converter" listed under "USB Controller" and select ftdibus.inf.

After that, reboot your pc and make sure both devices really use Version 2.08 by looking into the device properties again.

Perform the loopback test again, it should work now.