My symtoms were: Magic jack was plugged in but the warning you must plug in magicjack was being displayed.
I ran the recover program and it said ERROR: Broken Storage
recover program is at:
http://www.magicjack.com/site/downloads ... _setup.exe
I found that I did have a magicJack(e:) drive but only a removable drive (d:). Something is definitly wrong. I tried to browse the drive only to have XP tell me to format the drive.
Support gave me this procedure:
1) select start button, then run, then type 'devmgmt.msc' and select OK
2) In the Device manager window, select + next to DVD/CD-Rom drives
right click on YMAX Magicjack Device or Tiger Jet CD-Rom USB Device .
3) select uninstall.
4) unplug and replug in MagicJack
5) if you get WARNING YOU MUST PLUG IN MAGICJACK INTO USB
6) go to My Computer and check if there are 2 magicajck drives or removable drives in there
7) (in my case, 1 mj drive so...) right click on Removable disk (d:) and select Format and click on start format
Go to: http://upgrades.magicjack.com/upgrade/upgrade.exe and install update. THEN you will have to login using email and password
9) MJ works...but no contacts.
So, how do you backup contacts? Well, open the folder called magicjack and copy the file addressbook.xml