Just to highlight the key step that solved the problem for me using a Nexus 5.
Follow the steps by Neeraj, just replacing the first one by the drivers in http://developer.android.com/sdk/win-usb.html
Key point is to make sure you change the usb connection to use PTP and try to install the driver from the Nexus 5 under other devices.
That solved the issue for me.
