Ok so here's what i have tried so far...
I've reinstalled drivers (2 times)
I've reprogrammed the PIC (3 times) (Check sum is correct)
I've tried 2 different usb cables that i have here (I'm going to buy another brand new high quality, high speed, one in the morning)
I've "restarted my computer (2 times)
I've tried dongle on another computer with drivers installed.
I'm out idea and combinations of ideas.
I've got another usb board(chip) and another PIC ordered from mouser just in case should be here by monday or tuesday, but is there any kind of test I can run on the usb board specifically to confirm or deny that is is or is not the culprit or is there any thing that i might can test on the dongle to narrow down the issue further.
By the way what are the test header pins for on the dongle???
Thanks for all of the help so far, hopefully I can figure this out soon.