@Gofaster: happy to see I´m not alone in this problem. I think we have exactly the same problem to connect.
I use W7 64bits (the only difference with you) but I think this is not relevant.
I´ve downloaded again last HEX files and QGC. Still the same problem. But I can get log files and also I can flash new firmware correctly (so, it looks that cable works, in some manner).
I need to try Joebar´s suggestion of removing DTR pin in FTDI board. I guess the DTR pin is pin #6 Isn´t it? (pin#1 is ground- black, and has this small triangle mark on the connector).
Angel