What make/model is your flash drive?
Which version of windows are you using?
As in your post you say 'PNY' which is the same make as my flash drive.
As far as I'm aware there is only one driver available, which covers all operating systems (you don't need driver for windows xp), although this isn't supplied with the device.
I believe the web site I was pointed to to get my driver from was
http://www.pny-europe.com
Is this the site you downloaded your driver from? If not you could try this site.
If you keep having problems I could email your and attach a copy of the driver file I downloaded to see if you have better luck with that.
It almost sounds as if either the file is corrupted or the program you are using is causing an error (hence Dr. Watson), the other possibility is that the file is set to open with Dr Watson, which would give an error saying Dr Watson couldn't open the file, which sounds like the error you describe.
Good luck.
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