Download the beta files in the other forum you posted in. MWIIConvert.exe will change it back to software mode.

To find out if its in hardware mode start up Macro Works II and check the information on the system tray.

Click on the MacroWorks II icon in your system tray (down by the clock). Your device should be listed with an ID "BT" to shows that it is operating in hardware mode.
If your device has a numerical ID number then you are in software mode. If you flip the program switch it should open the window to program the device.