This sounds like the error we get when the device isn't connected to our pc.
We do managed to get the software working, but it hangs after a few minutes for no apparent reason and we have to 'End Task' in Task Manager to close it down.
Anyone have any ideas - I assume that there is some clash with a coms port or something similar - but its clearly not as child friendly as it should be.
P.S. we are running this on a laptop with Vista Home Professional