After working on this for several days, I'm at my wits end.  I have a Pod XT connected via USB to a System Running Windows Vista Ultimate.   I have the following Items Installed:
Drivers 4.2.5.1 (Newest)

USB Firmware 1.12 (Newest)

? Flash Memory    -        (Cannot UPDATE SELECTION)

The Line 6 Money sees the PODxT.  But none of the applications actually work with PODxT.  GearBox for example, Gives the Following Message whenever I try to play any audio through the PodXT, "The PODxt device cannot be in re-amp mode when playing tracks.   Would you like to switch the PODxt to normal mode?"  "Yes" "No".  I select "Yes."  The track plays but no audio.   So I stop the track from playing.  Following the previous articles regarding this type of problem. I select "Edit-> Preferences, and select the Hardware Tab, and in the Advanced Hardware Driver Settings, I select the "PODxt Driver Settings" button.   The Line 6 Audio-MIDI Devices - 3.54 Opens and shows My Line 6 Device: "Line 6 PODxt" Driver Version: 4.2.5.1 ESN: 1036685  .  I go to the "Inputs & Recording" Tab which is all greyed out and I see the following message. "Communication errors have been detected which prohibit reporting and configuring these settings.  Try power cycling the PODxt device and see if problems persist."  Power cycling makes the device disconnect and reconnect (validated by the driver app, and Line 6 Monkey), but my options are unchanged.   Rebooting systems, PODxt, lighting candles, chanting and encantations have had no effect on the PODxt so far.  

In reseraching this further, I came across an article to update the Flash memory, but when I select that option in "Line 6 Monkey", it is greyed.  All other updates work (License Manager, Firmware, Drivers, all my Apps).  See attached file.

I have tried every USB port on this system and have no other devices connected.  I have tried new USB cables.   I have even tried other systems Desktops and Laptops with Windows XP and Windows 7 (32 and 64-bit).   Different Makes Models and Manaufacturers.  No USB Hubs involved.  The PODxt is always directly connected to the desktop or laptop (no hubs).