What is the IP address of your computer?
You need to make sure that your computer has an IP address somewhere in the range of 192.168.1.1 to 192.168.1.255, and it is not the same address as one of the Cobranet devices on the network. So, since you have the "Enable Auto Assignment" passing out IP addresses from 192.168.1.1 through 192.168.1.230, I'd set the IP address of the computer to something like 192.168.1.231.
You should close Discovery before you change the IP address of your computer.
As a sidenote, I find it very curious that you need to update the Cobranet firmware before doing the Audia firmware and I wonder just exactly why that is.
Are any MAC addresses showing up in Discovery? Do they say something about "timeout" and have an IP address that is not in your range? If this is the case, you need to right-click on the device and select "New IP Address" from the menu. Then give it an address in your 192.168.1.X range.
Oh yes! One VERY IMPORTANT THING!!! When you go to "Tools" and select "Options", please make certain that you have the correct Network Adapter selected in your computer. On occasion, when I have had trouble with a laptop, I will check the Network Adapter settings and the wireless connection will be selected. Be sure to select the adapter that you are using to connect to the Cobranet network.
(In the interest of full disclosure I am currently employed by the MediaMatrix division of Peavey Electronics and play with Disco on a nearly daily basis when dealing with our Cobranet networks and testing.)
Good luck and have fun!!!