If it works on the PS3 but does not go into update mode, my feeling is that the bootloader is corrupted. Contact the site you purchased from and see what their exchange policy in regards to sending you a replacement.
The tape is for short circuit where the PS3Key wont be recognized at all..even on the PS3. However, there have been reports where the PS3Key works out of the bag/box on the PS3 but does not go into update mode. PS3Key is aware of the problem and is looking to see what is the problem.