I know it's a bit late, but I just finally got around to installing Windows 8 on my desktop. Hopefully this will help someone else.
I was able to set mine up after following EleanorWilliams from the Cisco Forum here: http://homecommunity.cisco.com/t5/Connectors/valet-connector-not-recognized-by-windows/m-p/395119?comm_cc=HSus&comm_lang=en, even though the directions for previous versions of Windows.
While the AM10 wireless usb adapter is still installed:
Go to “Device Manager”
In Windows 8, Get to the charms by going to right top/bottom corner -> Settings -> Control Panel -> Hardware and Sound -> Device Manager
Is your AM10 wireless usb adapter showing in both “Disk Drives” and “Network Adaptors”
Yes: Then your connector is working – reconnect to the internet
No: if showing in “Disk Drives” (USB Storage), but not in “Network Adaptors” (Wireless Device), your device is only recognized as a USB storage
Close “Device Manager"
You will need to go to another computer with internet access to download the “Utility Set-up” to a portable storage device to complete the process:
Go to “Valet Connector AM10” http://homesupport.cisco.com/en-us/support/valet/AM10/
Go to “Downloads”
Save the “Cisco Connect Setup Software for PC” to the portable storage
Take the downloaded Cisco Connect Setup Software for PC and the AM10 wireless usb adapter to the computer that is having the recognition issue.
Insert your AM10 wireless usb adapter
Go to “My Computer”, select the AM10 wireless usb adapter drive that appears, then format the drive. (Right click on drive, Left Click “Format”)
You can leave all the information the same (default) (didn't need to change the filesystem from FAT 32 either)
Click “Start”, this will take little bit, but when completed, Close, Remove AM10 wireless usb adapter.
Insert your portable storage with the downloaded utility setup. Now, you can start the utility setup on the portable storage or move the file to your hard drive (I moved to hard drive, if it did it once, may happen again).
Go to the “Utility Set-Up”, let it run
You will be prompted to insert your AM10 wireless usb adapter.
You will be prompted to enter the password to the wireless router
You should then get a screen that says “now you are ready to surf the net” or something to that affect.