SOLVED:
I re-tried installing the drivers on the original computer. This time when we got to the step that said to plug in the USB on the printer and turn it on, we turned it on first, pressed the "Edit Lite" button to turn the matching indicator light off and then plugged in the USB cable. It then installed as a printer and the P-Touch software could use it with no problem.
At no time during the installation attempts on the original computer, did we ever get the dialog box about temporarily using it with the Editor Lite. I suspect that the QL-800 printer does include some storage that contains an executable lite editor. Having it turned on on the printer seems to force installation as a storage device instead of a printer.
I re-tried installing the drivers on the original computer. This time when we got to the step that said to plug in the USB on the printer and turn it on, we turned it on first, pressed the "Edit Lite" button to turn the matching indicator light off and then plugged in the USB cable. It then installed as a printer and the P-Touch software could use it with no problem.
At no time during the installation attempts on the original computer, did we ever get the dialog box about temporarily using it with the Editor Lite. I suspect that the QL-800 printer does include some storage that contains an executable lite editor. Having it turned on on the printer seems to force installation as a storage device instead of a printer.