Unless you patch your game with the patcher I posted above it will always say LED BAD. This is normal and can be continued with the next button with a working input.
For a TASOLLER you should have the CFW from the 手台č¨ĺ®š folder, using the AMD host file if you have an AMD CPU.
You mentioned using zadig; after you updated the firmware and used zadig when you go to Devices and Printers is there a I SAY NYA-O device? If you do have the device, does it have a yellow triangle? If it does then you have to use zadig to reinstall the driver.
With the firmware setup you'll need to move the injects from the provided copy of sega tools, the hooks from the 手台č¨ĺ®š folder, and the DLLs for the TASOLLER IO itself.
Then you'll need to configure the segatools.ini to use the new IO DLLs.
I have provided a copy of the firmware (with zadig), my revision of the patcher, and a partial copy of my bin for just the relevant files.
If you do override the segatools.ini you will need to configure the VFS and DNS keys again.
TASOLLER.zip