The hardware shows its in bootloader mode with the green led.
Have you tried using a different USB port, and a different PC ?
It is correct that it doesnt show in the device manager while in boot mode btw, so that seems correct.
Device manager should show
It does do the usb connect sound though.
Start the M-Touch update directly from the start menu (type M-Touch and it will show) instead of launching M-PC.
The uploader is v2.6a