Hi. I don't know anything about that machine. But here's what I'd suggest before you throw in the towel.
Go to Yahoo groups and see if you can find a group for the machine or Brother embroidery machines in general. People on these groups are incredibly generous with their time in trying to help members work through issues. They might be able to provide guidance as to how to get your reader working and getting designs loaded.
You might also find support for the reader/converter box at the manufacturer's website. Or find a forum that deals with it.
What kind of box did you get?