I just looked at Sony's Asian support site and there is a file named "usbupdate.exe" that you must download and install before running the install routine off of the CD that came with the camcorder.
Unfortunatly, Sony's WWW site setup prevents me from giving you a diurect URL but you should be able to find it prestty easily.
Go to
http://www.sony-asia.com/
Select "Support"
Select "Handycam"
In "Downloads" Select "Mini DV Handycam" and model "DCR-TRV16E"
Click on the "Installation Of The USB Driver In Windows® 2000" link.
That should take you right into where you need to be.