I don't think it's the phone. Try this and we can go from there.
Download and install the Android SDK from here:
http
/developer.android.com/sdk/index.html
Following that, open the SDK manager and install the following packages:
Tools > Android SDK Tools, Android SDK Platform-Tools
Extras folder > Google USB Driver, Android Support Library
Now turn on your phone and go to settings > applications > development > enable USB debugging.
Next, connect your phone and wait for the message to pop up. Close it, and open the device manager by clicking start and typing "device manager."
In the device manager, go to ADB interface, and your phone should be listed there. Right click it and select uninstall, then follow the prompts. Still in the device manager, go to disc drives - your phone should also be listed here. Again, right click and uninstall it.
Once done, right click the usb icon on your taskbar and select to safely eject the phone. Now reboot both your computer and phone.
Next time you plug in your phone, the PC should re-install it using the Google Driver from the SDK. It shouldn't give you the error anymore.