I found a fix that worked for me.
I followed these steps:
1. Uninstall Desktop Manager (DM).
2. Downloaded lastest DM from: https://www.blackberry.com/Downloads...93E4F3BB068C22
3. Select DM 4.1 from the drop down box after clicking the above link.
4. Then download file 41112dtMULT.exe. It is 124MB in size. Do not use the English only file! I tried using the 35MB English only file and had the error with that one on every install. DO NOT INSTALL 41112dtMULT.exe until you complete steps below.
5. Run REGEDIT on your computer, and search for KEY with string matching "Research In Motion". Delete all KEY instances of this registry key.
6. Delete the folder "C:\program files\common files\research in motion".
7. Install 41112dtMULT.exe.
8. Do not launch DM at the end of the install process.
9. Reboot your computer.
10. Launch BB Device Manager.
11. Plug in your BB Device with USB cable -- wait for Windows Device Manager to load the drivers--the plug n play icon on your systray should appear momentarily and disappear within a minute or two from your windows systray. Wait!
12. After plug n play icon disappears in your systray, verify BB Device Manager can detect your device connected via USB.
13. Unplug your device from the USB cable.
14. Leave BB Device Manager running.
15. Run/launch BB Desktop Manager. Wait for it to connect to your Outlook profile--make sure you have network access to your Exchange/BES servers.
16. After Desktop Manager is running, plug in your device.
17. End of instructions!
This should work for you. If not let me know.