The second requires the device be connected to your system via a COM port on Windows. Now if you are expecting to do a RS-232 style terminal connection over USB, it must be a USB serial port. You can buy RS-232 to USB converters. Some devices have a USB port that implements a RS-232 to USB converter internally. On Windows, for any kind of hardware like this, you'll likely need to install a manufacturer-provided driver - this is probably why you are having trouble.
Then, in devmgmt.msc, under Ports, you'll see an extra COM port. You can use this to talk to your device through PuTTY (or Hyperterminal, if you insist.).
Free Virtual Serial Ports is a Windows user-mode application, which allows you to create software virtual serial ports and emulate physical serial ports behavior. It operates exclusively in user-mode, therefore it is more stable and uses less memory, processor and operating system resources than any competitive products.