I had the same problem as everyone else and tried EVERYTHING listed as a resolution. I then did the following and it worked:
Type in code *#7284# which will bring you to the phoneutil screen with PDA, Modem, and QualComm USB Setting options.
Click the Qualcomm USB Driver option and select the MTP + ADB option a little message will appear @ the button of the screen saying saved, now just press the back button all the out to the normal screen.
I then powered off my phone, took out the battery, sim card (tmobile) and micro sd card, put them back in, powered the phone back on and then plugged it in using the usb cable (not original that came with phone) and it started installing the usb drive and then worked. This had been bugging me for 3 months and I finally got it to work. Hope this works for everyone else as this issue was frustrating.
Addon Note (from a user with a VZW Galaxy S3): This worked for me but I had to activate the hidden menu by dialing *#22745927 and changing the hidden menu option to "enable" and then entering the above code. Dial this in the keypad without calling it. It should bring up the menu after entering the last number.