It appears that the Domino can work in two basic modes, the firmware loading mode and normal debug mode when connected to the PC. If your Domino is not connecting correctly with the PC or you have weird driver issues, you can always get it back to normal! No matter how messed up things seem!
The mode that the Domino operates in is determined by the state of the loader button ( the button closest to the USB connectors on the board) when it comes out of reset. The board comes out of reset when you plug it into the PC as the USB connector carries power for the device. You can manually reset the device by pressing the reset button of course.
So say you have put the domino in a bad state, nuked the firmware both of which I have done by accident. Do not panic.
Plug the board into the PC, ignore any windows messages about drivers and such. Go to the Windows device manager and remove the devices and drivers. Remove FEZ. Reboot.
Now when windows is back insert the FEZ, if there is no firmware you will not be able to properly install the drivers so ignore any messages from windows. click cancel or no for any dialogs that seem to indicate errors.
Push the Loader button down and then hit the reset button and release it. Remember the state the domino is in when it comes out of reset depends on the loader button, when it is down we are now in loader mode. Windows will ask you for a driver, select the GHI Bootloader driver from the SDK. Load up TeraTerm, and you should see a serial port that allows you to connect the FEZ. Connect via serial. Hit X, do the xmodem transfer of the firmware (don’t forget to select 1K on the file selection dialog! I always do!). Unplug fez, plug it back in and now you should be asked for the location of the normal debug drivers, point to those and now you are back to square one.
So don’t be afraid of breaking anything. I have learned that this is a very robust system and it sometimes helps to just go and try things knowing you can always get back to a known good state no matter what.