Ok I got my replacement cobraUSB today. I repeatedly ran the PC update flasher for 2-3 HOURS before it finally went up to 100%. I tried...and tried....and tried it again and again. After almost giving up, I switched USB ports for the 1st time, and attempted again about 8 more times before it finally completed.
All I got to say is the PC updater (at least from my experience with it on Windows 7 64Bit) is probably the most unstable/unreliable piece of software I have EVER used in my life.
I recommend buying Cobra from a source that pre-flashes the dongle for you, so that you can skip directly to using it, and updating the CobraUSB directly from the PS3.
Goodbye crappy PC updater software. Hello PS3 USB Updater (for future updates).