Instead of fighting it, I decided to upgrade. The drivers that the dongle needs are included in the linux kernel from 3.0. I decided to upgrade to Debian Squeeze, which is the same OS my Raspberry Pi uses.
Also, the OS, Ubuntu Jaunty, I’m currently using is long past its end of life.
Writing the image seems like its going to take hours. I found a method for checking the progress of dd on OS X:
kill -SIGINFO <PID> will make the dd process print its progress.
Edit: This didn’t really work. I’m going to start again.