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Originally Posted by WythDryden
I just got a replacement TP2 (the windows key went on my last one, and also had the rainbow banding) and I had the same issue. Do you have AVG installed perchance? I couldn't get the unlocker to work until I uninstalled AVG. I tried disabling it every which way and it still wouldn't work until I completely uninstalled it. Hope this helps. 
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I have AVG Installed, but not running unless I choose to. It is the light version.
The error I get doesn't seem like a Anti-Virus error, I could be wrong though. I'll try it.