I think all the settings have to be set in their specified modes to work. Basically, my experience was that the ILTW was running in Asynchronous mode in Foobar through ASIO, and streaming 24/192 files. The laptop was running 32-bit XP, and I checked the different output modes --- kernel streaming also worked. I asked the owner of the shop to let me listen to the ILTW on my own laptop. We installed the drivers, but it didn't register, and realized that it was that my laptop was running 64-bit Windows 7, and the driver only works for 32-bit XP/2000/Vista/7. Thus, I elected to listen to it in adaptive mode. We switched the toggle inside the case, and flipped the switch in the back as well. The DAC then identified itself in Windows 7 x64 in adaptive mode with no problems and I could listen to it in WASAPI, Kernel, and every other type of output with no problems, just like a typical USB DAC.
Unfortunately, I don't have more information beyond that. If I have more, I'll be sure to let you guys know.