I tried everything shown in these posts-
1. Added key in registry: HKEY_LOCAL_Machine\SYSTEM\CurrentControlSet\Services\Usb
2. Went into device manager and reset the power option to not turn off any of the USB ports after a timeout period (had to individually do it for each one).
3. Pulled power cord and left it out overnight.
Just re-booted this morning and it still malfunctions. My Kingston Jump Drive works OK, but my new MP3 player (really a glorified Jump Drive) gets the error over and over until I pull it out.
This is really weird. I have three USB ports on the front of my tower and three in back and two on mother board. If I plug the Kingston into port 3 on the front, it always fails. If I plug it into port 2, it always is OK. Port 1 seems OK, too. If I then remove it from port 1 and then plug my new drive into port 1, it works there, too! But never in port 3.
I hope Microsoft comes up with something soon. It just recently started doing this. It works OK in my Dell laptop (both running XP Pro, SP2). Seems to be OK under Win 2000, but have had some issues with USB mouse and scanner on that machine where I had to plug them into other ports to get them to be recognized.
This sounds like a major problem.
P.S. I ALWAYS remove the USB items from the system tray before I unplug them!