It's been over 2 weeks since I've used my HWUG1 interface, so the details are fuzzy at the moment. You say "I've installed hwug1 for windows 7 but no luck." I'm not sure what you mean by this.
I did not install (or if I did, I later removed it) any of the useless software Hawking had on their website. I just plugged the HWUG1 into a USB port on my laptop and followed the default Microsoft methods for installing the drivers as Windows 7 'thought' best. After this was done I went to Device Manager (under the Control Panel) menu, and my HWUG1 was identified as an "RT73 USB Wireless LAN card" and flagged as working properly. Did you ever get that far? If not, you failed to install the device, any further error messages won't be relevant.
The error message "the settings saved" etc. imply the device you are attempting to use to connect to the network is improperly configured. That may not have much to do with the HWUG1. What other "Network Adapters" show up on your Device Manager menu?