After 2 weeks of banging my head against the wall on this, I've figured out how to solve the issue. I'll lay out the steps here in case anyone else has this trouble (this should really be in your Documentation/Tutorials somewhere).
Go to Start->Control Panel->Programs and Features
Click on "Turn Windows features on or off"
In the Windows Features box, scroll down to Tablet PC Components and make sure that it is checked.
Click OK. If it was previously unchecked, this will take a few minutes and ask you to restarted. Upon reboot, you will have 255 touch points instead of 1.
I hope this helps someone else.