If I understand you correctly there is one obvious question that I have to ask.
If it runs OK without the dongle, why are you trying to emulate the dongle??
I don't think the dongle is toast - as it functions flawlessly (with the exception of the Hasp HL key failing to install occasionally - which is becoming more seldom).
What does that mean?. Does it work flawlessly or does it fail to install. How do you klnow it works flawlessly if the app runs without it??. This makes no sense at all.