I solved problem # 1 !!!

After losing too much hair on this, including a re-install of Ubuntu
witch made no difference, I REFORMATTED (FAT32) the key just like you
would a floppy. Now it works!!! Unfortunately, I had to do that in
windows since, embarrassingly, I don't know how to do this in linux...
Yet. I guess there was some screwup that did not prevent windows from
reading the key.

As for problem #2,

You seem to be the one to ask so let me give some more details:

After Linux installation, Ubuntu (or any other distro), tells me that
it has a proprietary driver NVIDIA for me. Now when I install it, it
works! I see special effects, my screen resolution options go up, etc,
etc...

My problems start when I reboot! All traces of the newly installed
driver is gone. In fact, he has NO video drive at all and it is
demanding that I manually provide video and monitor setup information.
If I get through there, I end up with a 640x480 screen since I don't
really know how to answer those questions. To date, my only solution
has been to re-install Linux and avoid the driver. I'd love to install
and keep the driver but I've got to know how to make it stick after a
reboot.