Well I finally figured this whole mess out. You are right, if I had the 1.1 installed, I would've received the instructions that tell you how to reset the NSL lock up I was experiencing. As I mentioned earlier I never did the update, so the PDF file was not in that directory and I couldn't proceed doing the update, because my NSL was not syncing up to my computer due to the USB driver that was missing.
Eventually, I figured out the driver error I was receiving required the USB driver that came with my NSL. After I got the syncing issue resolve it was easy to go to NevoStudio to download the 1.1 instructions that basically told me how to reset my lock up issue.
Bottom line is that it would have been nice if Nevo provided those instructions when you updated your Nevostudio or included that on the CD. Because if you had the syncing issue such as I and never updated to 1.1 you would have never received the PDF file that resolved this issue.
Nevertheless, thanks for providing me some guidance that helped me figure this thing out. When I talked to my reseller their response was to simply send the unit back to them.