Thanks, lank

I spent hours trying to figure out what was wrong with this and had the same problem. Here is how I fixed it.
First you need to update the spy camera drivers. The website to do that is pasted below.

http://www.eyespypro.com/faq/questions/12/DVR+Pen+Software+Update

Follow these instructions to update your software:

First, update the software of PEN DVR :

Press the Power switch of the pen until you put the Pen USB to the PC
The PC will find three disks, In the first disk, please delete the old software, and copy the updated two software name°® AkResData.Bin°¶ and °•Magic. Bin°¶ and save in the first disk. In the second disk, please delete °•system°¶ file.

*The rar file also contains a userconfig.txt file that you will need to edit and place into the same folder as the folder with the document that is written in chinese. MAKE SURE YOU ONLY CHANGE NUMBERS DO NOT ADD ANY SPACES OR IT WILL NOT WORK!!!

Disconnect the Pen DVR from the PC, and then power off the PEN, and then power on. Then update is done.

Once you have followed these instructions disconnect the pen from your computer and power down

THIS NEXT STEP IS IMPORTANT !!!
once the pen is powered down press the reset button or the device will not be recognized after the update and you will receive an error message!

Power up your pen and record 20 seconds of video then power down and reconnect to computer.

Check your folder for the new file (my files had a new extension after the update for example : AX00001

You should find that the timestamp has returned!

good luck and I hope this helps … i wish someone had written a detailed listing like this for me!

http://www.eyespypro.com/faq/questions/12/DVR+Pen+Software+Update

Follow these instructions to update your software:
DVR Pen Software Update
Article Details
Last Updated
4th o July, 2008

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There is a software update that you download here.

Once you expand the document follow the instructions below. This is direct from the factory and we have not tried it yet.

First, update the software of PEN DVR :

Press the Power switch of the pen until you put the Pen USB to the PC
The PC will find three disks, In the first disk, please delete the old software, and copy the updated two software name°® AkResData.Bin°¶ and °•Magic. Bin°¶ and save in the first disk. In the second disk, please delete °•system°¶ file.

*The rar file also contains a userconfig.txt file that you will need to edit and place into the same folder as the folder with the document that is written in chinese. MAKE SURE YOU ONLY CHANGE NUMBERS DO NOT ADD ANY SPACES OR IT WILL NOT WORK!!!

Disconnect the Pen DVR from the PC, and then power off the PEN, and then power on. Then update is done.

Once you have followed these instructions disconnect the pen from your computer and power down

THIS NEXT STEP IS IMPORTANT !!!
once the pen is powered down press the reset button or the device will not be recognized after the update and you will receive an error message!

Power up your pen and record 20 seconds of video then power down and reconnect to computer.

Check your folder for the new file (my files had a new extension after the update for example : AX00001

You should find that the timestamp has returned!

good luck and I hope this helps … i wish someone had written a detailed listing like this for me!