Arduino busted. Want to help a lost soul to understand what part of it broke?

Sorry for the delay. The last screenshot is what I wanted to see. Now, if you pull from your chip (Red Arrow) it will initialize things. Then, goto File -> Load Hex File then to Arduino-1.x.x\hardware\arduino\firmwares\ and UNO-dfu_and_usbserial_combined.hex file. When that loads, you should be ready to hit the "Run" button in the Operations pane. We have to use the "combined" file or we will lose the USB programming ability.