Ultimately I had to use my wife’s laptop running Windows XP to get this thing out of hardware programming mode. I used the following steps from firstname.lastname@example.org:
Download and install Macro_Recorder. This installs XkeysW2k.sys in the C:\Windows\System32\Drivers folder which will be necessary when you plug in the USB device in programming mode. You will have to specify the location when the Found New Hardware wizard pops up.
Download and install Splat_Converter. Launch it, hit “Get Mode” and then say “SPLAT”. Your device will no longer be recognized but you can take it back to Windows 7 running MacroWorks 3 and start programming.