It sounds like its still using the driver off the CD or a different incompatible driver, you could try booting into safe mode to remove the old driver/software and then boot into normal mode with the dongle unplugged then go through the v3 Setup again.
The driver that lists in device manager for the dongle is listed like it is below -
Driver Provider - Atheros Communications Inc.
Driver Date - 20/10/2009
Driver Version - 3.5.0.7
If yours is not listing the details as above you know its wrong, you could try forcing the update by manually updating, choose update, then brows my computer for driver, choose let me pick, and see what other drivers you have listing.