Hi Insjmb,
Dear member of SanDisk Community, welcome.
[ Also, how do I downgrade back to version 1 so that I can decrypt my files and migrate them to the new version? ]
Friend, very intelligent question.
What happens is that, v1 and v2 have different name for encrypted folders, so v2 it shows empty folder, because it is new.
You have RunSanDiskSecureAccess_Win.exe, which is the version v1.
Here it is (free, 29,3 MB): http://mp3support.sandisk.com/downloads/RunSanDiskSecureAccess-Win.exe
Perhaps, it will be useful: http://forums.sandisk.com/t5/All-SanDisk-USB-Flash-Drives/V-1-of-32GB-Cruzer-Glide-and-Win-7/m-p/330167#M9418
Enjoy, and then you tell us, what happened, please.
Regards, Alfred. (Google translated)
