Have you tried the SpaceNavigator on a different PC ? The firmware alone may not resolve the problem if the device is not initially detected.
Full USB power is important in the initial recognition of the 3Dconnexion devices. If the SpaceNavigator is plugged into a front USB port , try it in a rear port instead. On a laptop have the AC adapter plugged in. These sound like small changes but we often see them make the difference in recognition - especially with Windows 7.
Holding down both SpaceNavigator buttons when plugging into the USB port can also help. Once the device is plugged in, use the Start Driver shortcut to start the software. Once the device is recognized it will start at Windows startup. [Start|All Programs|3Dconnexion\Driver\Start Driver]
to see whether the SpaceNavigator is being detected in the HID section of Device Manager.
If you are still seeing a problem , please contact our Technical Support