MIDI Guitar USB Driver?

You are most likely dealing with  a class compliant driver. What that means is that if Windows recognizes the device as a MIDI controller, then it will use built in Windows drivers. So when you ask Windows to search for a driver, it tells you one has already been installed, and none more recent is available in the Web Based Windows driver catalog. The good news, you probably have a driver. The bad news, you do not know how to connect your application to the driver.
 
First check in device manager and see if your device name or an unknown device or a device with a mysterious name shows up under sound video and game controllers. Check for an error sign or under properties to see if it is working properly i.e. connected to Windows via a working driver. If everything there is working start Sonar from scratch and Edit/preferences/Midi devices. Look for anything in the available MIDI inputs. It is possible that your device does not announce its identity to Windows, at least not as something you recognize, so if there is anything in the available list that either has no name or is a name you do not recognize try connecting to that. 

So where  (under which heading) does device manager show the unknown device?
Does it show the unknown device as working or with an exclamation point?
Look in the device properties (right click) and see if you can find driver details. Also there is a lot of valuable information in the drop down under properties in the details tab if the device is working. If the device class is media, then Windows probably does think it is a MIDI controller.
A lot of plugging and unplugging may exceed the Window MIDI port limit, so you might want to clean out unused ports:
http://www.harmonycentral.com/articles/solving-the-windows-midi-port-problem
 
 

Guess what? I got it :-)
 
For some reason it shows up as an unknown device when hooked into either of my front usb ports (one is 2.0 and one is 3.0) but when plugged into any of my rear usb ports, it gets recognized right away as a USB Audio device and can be selected as a MIDI input in Sonar. Awesome.
 
Now I just gotta get used to loading 6 channels of sounds so each of the strings gets sound. It's weird wrapping my head around that haha.

That is really cool! I'll have to check it out. I got the Jamstick mainly for its smartphone based lessons/games though, the midi guitar feature is more of an extra bonus feature (especially since its just 5 frets). But once I play around with this I might have to look into that :-)