I now have one of these devices to check out how it works. The dongle that plugs into your laptop does appear as a mass storage device in device manager initially. I think this is just done so it uses inbox Windows drivers when first connected to the laptop.
When the dongle detects the video adapter powered up, the dongle switches USB configuration so the adapter looks like a DisplayLink device plugged directly into the laptop. So no additional wireless drivers are needed.
If the dongle is not switching configuration, then the dongle is not detecting the wireless adapter available and linking to it. It could be out of range of the dongle or the wireless adapter is faulty. I'm not sure how the dongle detects the wireless adapter or how it switches USB configuration as this is outside DisplayLink.
If you're still having trouble with this, I'd suggest contacting Diamond directly who own the product.
Wim
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