Ah, so perhaps that is a little confusing: there is a difference between a
machine being disconnected and a Melzi not being found. A Melzi would not be
found when it is broken (or not plugged in). In that case, in the upload/detect
tab, the port will not be available. If you see the port there, it means that
the Melzi is found.
However, that doesn't mean that it works. If the right firmware is not in its
flash memory, the system won't be able to connect to it. In that case, it says
the machine is not connected.
The solution is of course to upload the right firmware. I tried to make that
easy, but unfortunately Arduino has made that incredibly difficult. There are
different bootloaders which communicate at different speeds. There is no way to
detect what speed should be used, other than trial and error.
In the case of the Melzi, there are two different bootloaders that can be used.
A newly bought Melzi will have the "original" bootloader, in all cases I've
seen so far. For our workshops, we installed Optiboot on them, because it makes
flashing a lot faster.
So the bottom line is: you should select the original mighty1284 bootloader and
try to upload. If it doesn't work, try again with optiboot.
If that doesn't work, I think it may help to work this out in a phone call.
Please let me know (privately) when you are available, if you need this. I'm in
the Netherlands (UTC+2) so please try to find a time when I am awake. ;-)
Thanks,
Bas