You can re-download the USB eBookwise driver here http://www.ebookwise.com/librarian/help/
Down towards the bottom where it says Downloading eBooks to your eBook reading device and then eBookwise-1150 and GEB 1150 users: you will need to have the USB driver downloaded and installed before connecting to the Librarian. If you do not have this driver, you can download it at http://www.breeno.org/eBook/Windows_eBookUSB.exe
I don't know why it says Please be sure you can access your Online Bookshelf (if they are still in operation at the time of this reading) before attempting to access your local bookshelf via the Librarian. Because obviously I can't access the Online Bookshelf and I'm not having any problems.
Another thing to check is your port settings. I am using HTTP proxy address 127.0.0.1 and proxy port 80.