Finally got back into looking at my driver/bootloader issue.
I thought that I did reprogram my Pro Micro with the Leonardo bootloader, well I was wrong. Whatever I programed into the Pro Micro was not the correct bootloader. So I tried again with the new released Arduino 1.01
Here is what I did:
Installed the latest Arduino 1.01
connected the AVR Pocket programmer from Sparkfun to my Windows 7 box
used 6 jumpes to connect VCC, GND, MISO, MOSI, SCK and RESET from the AVR Pocket programmer to the Pro Micro
started Arduino, under Tools->Board I selected Arduino Leonardo
under Tools->Programmer I selected USBtinyISP
lastly under Tools select Burn Bootloader
this starts the programming of the Leonardo Bootloader onto the Pro Micro
Be patient, it takes some time and there is no indication things are working. But once all is done, the two yellow LED’s lit up.
From here I installed the driver as shown here: http://arduino.cc/en/Guide/ArduinoLeonardo
Edit: might have spoken too soon. Initially all looked good, it showed me Leonardo was found and gave my COM13 as serial port. Once I tried to download sketch, all disappeared and the Device manager goes through enumaration when I plug the Pro Micro in, but eventually settles on Unknown Device under the USB controllers, no new com port is showing up. So back to the drawing board.