Vinyl Express Lynx and VE LXi software

Hello i hope you guys can help me. I just go this VE Lynx cutter from a friend. Its an older Vinyl cutter but seems to still work good the times my friend used it.. It came with VE LXi Expert 7.5 v4 software and a usb key.. I installed the software and put in the usb key but when i start the program it says " This application requieres that a hardware key to be installed, but was not found." When i connected the key windows said it was installing drivers and then said that it was ready for use. It also has a red light that turns on when i plug it in. i tried all the usb ports i have on the computer restarting the computer every time i tried a new port and i got the same thing .. I dont know what to do i have windows vista 64bit. Also when i installed the LXi software it did a hardware check and everything checked out except for memory. it said it needed something like 128 mb or ram and i only had 1 mb available and that impossible. Now with the plotter.. i

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