I am having the same problem with my ZTE Blade, It restarts when I press connect to PC, (the 'loading' ring spins and then it restarts), I am on 7.1.0
[Edit] After I got stuck on CM7 bootscreen after a restart due to the above issue, I removed my battery to turn it off and placed it back to start my phone, I can successfully connect to PC... for now atleast... (will post back if I fail to connect again)
[EDIT #2]: It seems like moving your themes to internal storage will help. Works for me now
Edited by Siddhartz, 18 February 2012 - 09:10 AM.