I would have thought that driver version 9.20.605 (which you say is installed) is a more recent driver than version 9.18.709. I wonder where the 9.20.605 driver came from and why you believe that the older one will work better. Perhaps, as you suggest,
the newer version is not a Twain driver, although the numbering scheme suggests that it is the same as the other one.
The following is based on XP. It's probably the same for Windows 7, but I don't know for sure.
Typically, drivers are installed from a *.inf "package." Inf files are text-based files containing information required by the system to install a device's software components. However, the first time an inf file is used, Windows "precompiles" it and creates
a corresponding *.pnf file to facilitate efficient processing. A PNF file includes information about the content of the original INF file, as well as the name of the INF file and other file attributes.
Setup uses the PNF file instead of the original INF file. If a PNF file does not exist, Setup generates one for the INF file. For vendor-supplied INF files, the information contained in a PNF file also includes the location of the original INF file.
See
http://msdn.microsoft.com/en-us/library/aa741213%28v=VS.85%29.aspx and
http://www.filesuffix.com/en/extension/pnf
The reason that the paragraph above may be relevant is that frequently an updated driver has the same name for the inf file as the previous driver. Thus, when the new inf file is saved in C:\Windows\inf, it overwrites the old file -- which is what you want.
However, when Windows goes to actually install the driver, it uses the old pnf file, which may result in the old driver being installed, notwithstanding the new inf file.
Because the Fujitsu download is an exe file (and it's not a compressed file that 7zip can open), I can't tell exactly how the Fujitsu driver installation proceeds. However, one thing you might try is to look in C:\Windows\inf for any inf files that relate
to Fujitsu. I assume that the file names will start with fj. If there are corresponding pnf files, either rename them (e.g., *.pnX) or move them to a non-system folder. Then try reinstalling the downloaded driver and perhaps you'll get the new version.