ive had this issue with an hd pro, trying to get the pod to record has been a nightmare. heres what i did: line 6 monkey did exactly what u describe in your post. it went through the installation process except, when i reopen monkey, it does not detect the POD automatically nor have any drivers actually been installed.
i closed monkey and downloaded the driver myself from the list off the line 6 website which i stumbled across through google. i installed this. then monkey detected my pod and the driver had a green checkmark.
next i encountered a similar issue trying to update the firmware, it wouldnt detect the pod and time out, even though in the previous screen the pod was clearly detected. to fix this, i simply closed monkey again and turned the power on the pod off and on. upon starting monkey again, i found the firmware updated with a green check mark. weird.
its like a soap opera with this thing always some curve ball outta nowhere, let us know what happens next!