I don't think there could be another way. Any client networking product that you install, should be under dev directory and compatible with developer.So you will have the same problem. I don't suggest you to do that because you may spend a lot of time with no result. I had the bad experience in the past.
For the step to step procedure I don't have those tools right now. But as far as I remember if you installed PO8 and its networking products, you should have "network assistant" or "net8 configuration assistant" and you can use any of them (preferably the second) for configuring a listener.
About the ODBC drivers, as far as I remember the reason is in the version of the developer you use. Once we had the same problem and we upgraded to Developer 6 for the same reason.