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According to the Microsoft Technet support page, this means that you do not have sufficient privileges to carry out this activity.
From your actions and this error code, I suspect that the Nokia tries to install drivers when it connects and you are not logged in as an administrator; thus the error message. There are two ways to get past this.
Log in as an admin on the computer, connect the device, and permit it to install the necessary drivers once. Then log in as yourself and reconnect; there should be no error message.
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