Well I finally was able to downgrade the firmware to 10e. What fixed it for me was to go into the windows control panel, add or remove programs section, scrolled down to Microsoft .net framework 4 extended. click on that and chose repair and rebooted. program worked fine after that.
here is the log:
[R&D Test Tools Log File]
12:55:27 : Launching SW update
12:55:27 : Unpacking KDZ
12:56:59 : KDZ file extraced
12:57:35 : Files were extracted.
12:57:35 : LGMobileDL Load.
12:57:35 : Port = -1
12:57:35 : Connecting to phone
12:57:50 : Check Phone mode = 2
12:57:50 : Phone type check.......
12:57:52 : LGMobileDL.DLL Loading....
12:57:52 : _SetAuthMark Fail
12:57:52 : _SetAuthMark Ok : wAuthMark(65535)
12:57:53 : _DetachDLL Call
12:57:58 : _DetachDLL Call End
12:57:58 : Param : Path = C:\Documents and Settings\All Users\Application Data\LGMOBILEAX\Phone\MS50010e_03_Develop.wdb
12:57:58 : Param : moduleDir =
12:57:58 : Param : waitTime = 0
12:57:58 : Param : UsbHighSpeed = 1
12:57:58 : Param : PhoneMode = 2
12:57:58 : Param : BinVersion = MS50010e_03
12:57:58 : Param : AuthMark = 65535
12:57:58 : Call fn_StartUpgrade
12:59:13 : 3GQCT : wParam = 2004, lParam = 4
13:00:07 : 3GQCT : wParam = 2004, lParam = 5
13:00:34 : 3GQCT : wParam = 2004, lParam = 6
13:01:01 : 3GQCT : wParam = 2004, lParam = 7
13:01:28 : 3GQCT : wParam = 2004, lParam = 8
13:01:55 : 3GQCT : wParam = 2004, lParam = 9
13:02:22 : 3GQCT : wParam = 2004, lParam = 10
13:02:49 : 3GQCT : wParam = 2004, lParam = 11
13:03:17 : 3GQCT : wParam = 2004, lParam = 12
13:03:46 : 3GQCT : wParam = 2004, lParam = 13
13:04:13 : 3GQCT : wParam = 2004, lParam = 14
13:04:40 : 3GQCT : wParam = 2004, lParam = 15
13:05:07 : 3GQCT : wParam = 2004, lParam = 16
13:05:34 : 3GQCT : wParam = 2004, lParam = 17
13:06:02 : 3GQCT : wParam = 2004, lParam = 18
13:06:29 : 3GQCT : wParam = 2004, lParam = 19
13:06:56 : 3GQCT : wParam = 2004, lParam = 20
13:07:23 : 3GQCT : wParam = 2004, lParam = 21
13:07:50 : 3GQCT : wParam = 2004, lParam = 22
13:08:18 : 3GQCT : wParam = 2004, lParam = 23
13:08:45 : 3GQCT : wParam = 2004, lParam = 24
13:09:12 : 3GQCT : wParam = 2004, lParam = 25
13:09:39 : 3GQCT : wParam = 2004, lParam = 26
13:10:07 : 3GQCT : wParam = 2004, lParam = 27
13:10:34 : 3GQCT : wParam = 2004, lParam = 28
13:11:01 : 3GQCT : wParam = 2004, lParam = 29
13:11:29 : 3GQCT : wParam = 2004, lParam = 30
13:11:56 : 3GQCT : wParam = 2004, lParam = 31
13:12:23 : 3GQCT : wParam = 2004, lParam = 32
13:12:50 : 3GQCT : wParam = 2004, lParam = 33
13:13:17 : 3GQCT : wParam = 2004, lParam = 34
13:13:44 : 3GQCT : wParam = 2004, lParam = 35
13:14:12 : 3GQCT : wParam = 2004, lParam = 36
13:14:40 : 3GQCT : wParam = 2004, lParam = 37
13:15:07 : 3GQCT : wParam = 2004, lParam = 38
13:15:34 : 3GQCT : wParam = 2004, lParam = 39
13:16:02 : 3GQCT : wParam = 2004, lParam = 40
13:16:29 : 3GQCT : wParam = 2004, lParam = 41
13:16:56 : 3GQCT : wParam = 2004, lParam = 42
13:17:24 : 3GQCT : wParam = 2004, lParam = 43
13:17:52 : 3GQCT : wParam = 2004, lParam = 44
13:18:19 : 3GQCT : wParam = 2004, lParam = 45
13:18:46 : 3GQCT : wParam = 2004, lParam = 46
13:19:13 : 3GQCT : wParam = 2004, lParam = 47
13:19:41 : 3GQCT : wParam = 2004, lParam = 48
13:20:09 : 3GQCT : wParam = 2004, lParam = 49
13:20:36 : 3GQCT : wParam = 2004, lParam = 50
13:21:04 : 3GQCT : wParam = 2004, lParam = 51
13:21:31 : 3GQCT : wParam = 2004, lParam = 52
13:21:58 : 3GQCT : wParam = 2004, lParam = 53
13:22:25 : 3GQCT : wParam = 2004, lParam = 54
13:22:53 : 3GQCT : wParam = 2004, lParam = 55
13:23:21 : 3GQCT : wParam = 2004, lParam = 56
13:23:48 : 3GQCT : wParam = 2004, lParam = 57
13:24:15 : 3GQCT : wParam = 2004, lParam = 58
13:24:43 : 3GQCT : wParam = 2004, lParam = 59
13:25:11 : 3GQCT : wParam = 2004, lParam = 60
13:25:38 : 3GQCT : wParam = 2004, lParam = 61
13:26:05 : 3GQCT : wParam = 2004, lParam = 62
13:26:32 : 3GQCT : wParam = 2004, lParam = 63
13:26:59 : 3GQCT : wParam = 2004, lParam = 64
13:27:26 : 3GQCT : wParam = 2004, lParam = 65
13:27:53 : 3GQCT : wParam = 2004, lParam = 66
13:28:20 : 3GQCT : wParam = 2004, lParam = 67
13:28:48 : 3GQCT : wParam = 2004, lParam = 68
13:29:15 : 3GQCT : wParam = 2004, lParam = 69
13:29:43 : 3GQCT : wParam = 2004, lParam = 70
13:30:10 : 3GQCT : wParam = 2004, lParam = 71
13:30:37 : 3GQCT : wParam = 2004, lParam = 72
13:31:05 : 3GQCT : wParam = 2004, lParam = 73
13:31:32 : 3GQCT : wParam = 2004, lParam = 74
13:31:59 : 3GQCT : wParam = 2004, lParam = 75
13:32:26 : 3GQCT : wParam = 2004, lParam = 76
13:32:53 : 3GQCT : wParam = 2004, lParam = 77
13:33:21 : 3GQCT : wParam = 2004, lParam = 78
13:33:48 : 3GQCT : wParam = 2004, lParam = 79
13:34:15 : 3GQCT : wParam = 2004, lParam = 80
13:34:42 : 3GQCT : wParam = 2004, lParam = 81
13:35:09 : 3GQCT : wParam = 2004, lParam = 82
13:35:36 : 3GQCT : wParam = 2004, lParam = 83
13:36:03 : 3GQCT : wParam = 2004, lParam = 84
13:36:30 : 3GQCT : wParam = 2004, lParam = 85
13:36:58 : 3GQCT : wParam = 2004, lParam = 86
13:37:25 : 3GQCT : wParam = 2004, lParam = 87
13:37:52 : 3GQCT : wParam = 2004, lParam = 88
13:38:19 : 3GQCT : wParam = 2004, lParam = 89
13:38:46 : 3GQCT : wParam = 2004, lParam = 90
13:39:13 : 3GQCT : wParam = 2004, lParam = 91
13:39:40 : 3GQCT : wParam = 2004, lParam = 92
13:40:07 : 3GQCT : wParam = 2004, lParam = 93
13:40:34 : 3GQCT : wParam = 2004, lParam = 94
13:41:01 : 3GQCT : wParam = 2004, lParam = 95
13:41:01 : 3GQCT : wParam = 12, lParam = 1
13:41:03 : Step Complete : UPDATE FINISHED!
13:41:03 : ResetStartInfo() Call
13:41:03 : _DetachDLL Call
13:41:08 : _DetachDLL Call End
13:41:08 : FreeLibrary Call
13:41:08 : FreeLibrary Call End
13:41:08 : ResetStartInfo() Call End
13:41:09 : ===FINISHED===