I struggled with this for quite a while. No matter what I tried, I couldn’t get the fingerprint software to recognize the reader on the Windows 7 x64 install (x86 works fine). The drivers were installed, everything looked ok, but I would get a “fingerprint device not installed” error when launching the Upek Protector Suite software.
Turns out, Upek has a newer version out (Protector Suite 2009 for Windows 7) and its free to download. I uninstalled the driver and old software, rebooted, then installed the new Upek software, and lo and behold, the reader is recognized and I was able to add my fingerprints.
esSJae's Virtualization Blog 