it would appear, that on aggregate from other forums as well as my own install attempts, that the SCH-I500 is NOT compatible with kies.
all driver issues have been worked out, USB modes understood and adjusted, and now it just says "not supported".
latest versions, appropriate permissions, reboots, etc... it's not going to happen.
the galaxy S phones really are in no-mans-land. even the manufacturer won't support it, which is really odd, I thought it was well received across multiple carriers.