Hi,
I'd a similar problem like you but I managed to sort it out. The way I done it is like that.
1- I connected the reader to another computer running win XP
2- First, the computer did not recognize the reader but after I installed the CONNECT which is included in the original CD, the computer was able to see the reader.
3- Run the PRS-500 Updater 1.0.03.07.170 and this should restore it back.
Good luck!
Essam