I figured out what the cause is and how to fix it. When you put the disc in for the first time, it will prompt you to install the 1.01 patch and then after that it will do the main install. Installing the patch first doesn't work right and it ends up screwing up the install and that's why the OPSAT wouldn't work. To prevent this problem, skip the patch install and do the main install first. Afterwards, quit and start up the game and then install patch. The OPSAT works fine after that.
The developers didn't implement the patch install well at all for people who have bought the game after the patch was released.