I have exactly the same problem as KevinJett when running on VMWare Fusion in 64-Bit Windows 7, using the latest SDK. Reading this thread, I went through the (immense pain) of installing the full environment on a native Windows 7 (64-Bit) Machine.
This allowed me to update the firmware, and deploy and debug my application.
Switching back to the VMWare version (my primary machine) I could no longer deploy the (exact same version) of the application. I get the same output errors as KevinJett.
Willing to experiment with any suggestions you might have