I'm getting a lot better at Dragon and the Sony IC Recorder. The trick, which was not reported anywhere on the Dragon site or in the documentation, was quite simple.
My older version of Dragon used to start up and load my personal user profile but the newer version needs you to pick it whenever you start. At first, I thought that this was just an annoyance of the upgrade but I've since discovered it's a "feature" of the "Preferred" edition.
Instead of loading my normal profile, I chose to create a new user and was asked, as part of configuration, what type of microphone was going to be used. There was a short list, or so it seemed until I started scrolling. Near the bottom of the list, I found the Sony IC recorder. I selected that and Dragon prompted me to go away and read a large chunk of novel to the stick and then bring it back.
Foolishly, I chose Arthur C. Clark. I think I have been put off his books forever now. If you thought that the movie 2001 was a little tedious, try reading aloud from the novel of 3001. I wish I'd chosen Willy Wonka or Dilbert's guide to management instead.
Anyway, after a gruelling 6 x A4 typed pages, I was finished and reconnected the device to my computer. Clicking the next button in dragon prompted me to select the file and Press Voice Recog... Dragon did the rest.
Dragon did give me this scary message about it probably taking an hour. Given that "Microsoft Minutes" are least 20 minutes long, I was really concerned. Surprisingly though, I went and got a cup of coffee it was done when I returned. (No, I don't take that long to get coffee either).
I tried re-importing stuff from the stick that hadn't read very well previously. I got much better results.
I'm now very happy with the Sony IC recorder and with Dragon preferred, though I'm unhappy with their helpdesk because they made it almost impossible to contact them.
Hopefully my post here will help others.