Yes, I am sure that I have a Terasic USB Blaster-B part. It is printed on the PCB. I also see a FT245BL chip on the board. However, I am having trouble getting my computer to install a driver for this device. It does not locate one automatically. I installed the drivers from the FTDI site successfully but it didn't seem to help. In device manager, it still shows no driver and I'm not sure where to manually point it to find the driver. Given your line about the driver needing to be installed for FT_PROG to work, this definitely seems to be the overall problem.
Update in mid-Post, :)...I found where to manually point the driver and now FT_PROG works. I was able to apply your XML file and get my computer to recognize the cable as a USB Blaster. I was then able to successfully apply the drivers from the Quartus installation. I am still unable to get SignalTap to detect my device however, and I do not have blue light on the USB Blaster. Getting much closer to success though! Thanks a ton for your help so far!
Quick edit...I get blue light when scanning the chain, but not otherwise...May indicate the problem is on the board side?