I have the same reader and have had the same problems.....
now if I can just remember how I fixed it...I know I assigned drive (E) to it, and you have to turn the machine off to make it pick up the drivers and let PLUG AND PLAY find it..I believe I reloaded the software a second time...
I am only glad that I got it free with the mail in rebate...I would never have another one...BTW did you realize that you can put the Smart Card in upside down?..
OH S.. the damn thing is not working again...will get back to you on this one..