Ken
I don't think that reinstalling KDS (or down-grading) will help. More likely you need to re-install the USB driver since possibly something has gone wrong there.
When you have the debugger correctly installed you should see something like

You can also check your device manager since it will show the debugger

Below is the console output during the download of a project to the board (I am assuming you are using a FRDM-KL46Z).
However I suspect that your problem is not with the debugger but with the chip since the debugger doesn't look to be able to communicate with it.
Have you loaded any code to it before? (eg. with the the debugger's USB-MSD loader - dragging-and-dropping a file on its disk?). It is possible to lock out the debugger with bad code so check the forum for topics on unlocking the chip if that is the case.
Also try loading one of the binary files at µTasker FRDM-KL46Z support using the USB-MSD loading method to see whether the debugger can load using the other method. Maybe it can and then it will clear up the issue with the debugger (?)
Regards
Mark
http://www.utasker.com/kinetis.html
P&E GDB Server, Version 5.13.02.00
Copyright 2014, P&E Microcomputer Systems Inc, All rights reserved
Loading library C:\Freescale\KDS_2.0.0\eclipse\plugins\com.pemicro.debug.gdbjtag.pne_1.1.7.201410171532\win32\gdi\unit_ngs_arm_internal.dll ... Done.
Command line arguments: -device=KL46Z256M4 -startserver -singlesession -serverport=7224 -interface=OPENSDA -speed=5000 -port=USB1 -USE_CYCLONEPRO_RELAYS=0 -FORCE_MASS_ERASE=0
Device selected is kl46z256m4
User Specified Hardware Selection : Interface=OPENSDA and Port=USB1
Connecting to target.
OpenSDA detected - Flash Version 1.14
Device is KL46Z256M4.
Mode is In-Circuit Debug.
'Kinetis' is a registered trademark of Freescale.
(C)opyright 2012, P&E Microcomputer Systems, Inc. (www.pemicro.com)
API version is 101
Server running on 127.0.0.1:7224
Connection from "127.0.0.1" via 127.0.0.1
Copyright 2012 P&E Microcomputer Systems,Inc.
Command Line :C:\Freescale\KDS_2.0.0\eclipse\plugins\com.pemicro.debug.gdbjtag.pne_1.1.7.201410171532\win32\pegdbserver_console -device=KL46Z256M4 -startserver -singlesession -serverport=7224 -interface=OPENSDA -speed=5000 -port=USB1 -USE_CYCLONEPRO_RELA$
CMD>RE
Initializing.
Target has been RESET and is active.
CMD>CM C:\Freescale\KDS_2.0.0\eclipse\plugins\com.pemicro.debug.gdbjtag.pne_1.1.7.201410171532\win32\gdi\P&E\kl46z256m4_pflash_pipeline.arp
Initializing.
Initialized.
;version 1.03, 07/17/2013, Copyright P&E Microcomputer Systems, www.pemicro.com [mk_256k_n_pflash_m0]
;device freescale, kl46z256m4, 1x32x64k, desc=pflash_pipeline
;begin_cs device=$00000000, length=$00040000, ram=$20000000
Loading programming algorithm ...
Done.
CMD>EM
Erasing.
Module has been erased.
Initializing.
Initialized.
;version 1.03, 07/17/2013, Copyright P&E Microcomputer Systems, www.pemicro.com [mk_256k_n_pflash_m0]
;device freescale, kl46z256m4, 1x32x64k, desc=pflash_pipeline
;begin_cs device=$00000000, length=$00040000, ram=$20000000
Loading programming algorithm ...
Done.
CMD>PM
Programming.
Processing Object File Data ...
.
Programmed.
CMD>VC
Verifying object file CRC-16 to device ranges ...
block 00000000-00000007 ...
Ok.
block 00000400-00004A22 ...
Ok.
Checksum Verification Successful. (Cumulative CRC-16=$A175)
CMD>RE
Initializing.
Target has been RESET and is active.
Preset breakpoint encountered.