Ser Chris,
A day away has helped my nerves...
That being said I have been lead to believe it has something to do with a USB conflict or driver issue on my Windows 7 x64 box. If I have do the procedure you asked (same as I was trying, thanks for confirming I'm not crazy) when flirc is re-inserted to the computer it has no commands saved. I can program the arrows and enter and use them in explorer but they quit after a random set of time. Sometimes it's 30 seconds sometimes its 5 minutes. I am using a universal remote URC-r50, i have it set to a Panasonic tv profile. After reading some other issues deep in the forum I tried programming the device on an old Windows Xp Netbook. I would state that I am having "success" with that. The PITA about having to use the netbook is the resolution, 1024x600, isnt enough to see the entire gui and it's too slow to realistically test in xbmc so I have to switch between computers constantly. Not really an absolute deal breaker but still, not so fun.
I appreciate the support you have provided, and will continue to provide. I hope we can get this little guy working on my main rig. I actually have 2 flircs and have plans to get at least 3 more. You know us Americans, it's a tv and xbmc that makes it a room, not a door and a purpose.