After putting a USB memory stick into the usb socket next to my dongle (Hasp hardware key) the dongle light goes out and is no longer recognized by the system.

If you have your dongle and The Observer working and put a memory stick next to it the dongle light goes out (disabled by system) and The Observer pops up the "dongle not found" message.

This problem is known to occur on the following systems: Dimension 8200/8250/8300, Optiplex GX280 and Latitude D820.

Removing and reinserting the dongle will enable both the dongle as well as the memory stick.