I tried different methods to fix this. The Microsoft Update Utility finds update 17.1.1406.01. After letting it install, the bluetooth adapter 4.0 disappears from the list of device manager.
If I manually try to install the software, I'll get the same results. I had to install the previous 17.0.1405.02 again for my device to work properly.
Another method I tried is to go into add and remove programs and after the uninstall of ProSet Wireless Bluetooth Software, Windows 7 will installs it's built in driver which is 6.1.7601.17889 dated back on 6/21/2006. The adapter now shows generic in device manager and bluetooth doesn't work at all. If I try to install your new driver, device manager refuses to let me change the generic one and reporting that the best one is already installed. It appears that the driver within 17.1.1406.01 isn't recognized.