It took me a long time to figure this out. The literature is very poor.
1) Turn the camera on
2) Connect the usb cable to the camera and PC
3) Run the Kodak EasyShare software
4) Make sure the "My Collection" tab at the top of the left hand column is selected
5) Click the "Add Pictures" button at the top of the window to open a new window
6) The "M863 Digital Camera" should appear as a folder in the box under "Select a location". Highlight this folder. (You may have to open folders to find this folder. It should be at the same sibling level as the harddrives.)
7) Click the "Select all" button
8) Click "More Options", then "Preferences", then the "Transfer" tab
9) Click "Browse", then select the destination folder for the photos to be transfered to
10) Click "Apply", then "OK", then "Save and Close"
11) Finally, click "Add Pictures"
Bryan, January 2009