It sounds like you never installed a copy of the 8700 handheld software to your PC. Go to here and get it
http://www.blackberryforums.com/rim-...downloads.html.
Install it on your PC and Desktop Manager should list it in the apploader.
As posted above, you should probably uninstall the older versions from your computer first.
Keep yelling at the machine though. They need to be reminded who's boss.