Steve,
Was this a USB dongle before?
This must be the only dongle on the machine.
Cannot be running NT 4.0 with a USB dongle.
Go into HQ Manager | Help | About and what serial # is listed the old or the new one? New serial # is on the tag.
What version of HQ are you running? Same screen. Don't remember any problems, but you never know. Current version is 1.3.0209 or 1.2.0189 for
1.2
The dongle is on the machine that's running HQ Server right? Tried stopping and re-starting HQ Server?
Has your reseller tried it on his machine? Have you tried his dongle? Try creating a sample HQ database and see it works for that one
The dongle may be damaged. Try MS at 888-400-4266