Here is how the IBM drive was fixed.
Step 1. Unplug the key if it's already plugged in.
Step 2. Short R10 by placing one end of the paperclip on one side of R10, and the other end on the other side. (This step may take awhile, as it did for me, you have to have the paperclip ends touching just the right spots).
Step 3. Keep it shorted and then insert into USB port (still shorted)
Step 4. Continue to keep it shorted, the LED will then blink for a little bit. Wait until the LED goes off.
Step 5. Still keeping it shorted, unplug the key from the USB cable/port.
Step 6. Remove the paperclip, so that the usb key is back to normal.
Step 7. Insert the key back to USB port. The light should now blink a little bit and then go back off. One drive should now only be showing in My Computer. Right-click on it, and do a format.