Yeah NPS sucks!. It has a tab on the update section which checks if you have the latest NPS which always says you do! In fact you don't. You need to manually download the latest version from here:
http://downloadcenter.samsung.com/downloadfile/ContentsFile.aspx?CDSite=SFC_UK&CttFileID=2426632& CDCttType=SW&ModelType=N&VPath=SW/200909/20090910163927359/New_PC_Studio_1.3.0.IH4.exe&DownloadRoot=http://downloadcenter.samsung.com/content/&ModelName=GT-I7500
After installing that version NPS will recognise the phone and update it. Syncing etc still wont work, but at least you can update it!