With reference to your problem Jay, I still say it is conflict error on pc with usb and something else you have installed mate!
I have sold 300 of these dongles since launch and not really had any other problems from customers with excatly the same problems that you are experiencing!!
I just phoned a friend about this problem and he asked me to ask you to provide details of your pc and is the usb port you are using connected directly to motherboard or through its own hub??
Email it over to me and I will speak with him tomorrow
Enjoy your schmoke
WBR
yeldar