Finnaly got mine working. Had to use the original driver:
uninstall all previous drivers
reboot with only ps2 mouse - no usb devices
install old driver(without lilliput usb plugged in)
plug in lilli usb
Then it was recognized. Not sure if this was really the solution or I had a bad connection with the usb port I was using earlier.
Here are some notes from my research:
find out if usb is being seen
device manager - what happens when unplug/plug
try on another computer
broke orange touchscreen cable?
check lilli din connector - Make sure that all the pins are straight
install driver with ps2 option