To all you out there who have the USB Device Not Recognized problem:
I was struggling with this issue for several days and finally found the ultimate solution (well not exactly a solution but more of a workaround - hey but what the hec? it works!!!)
I've noticed that many of you have taken extreme (and costly) measures such as formatting your hard drives and replacing motherboards - in most cases this was ineffective, so here's what I advise:
Laptop users: Go to the nearest computer accessory department and purchase a PCMCIA-to-USB adapter. There are many cheap ones out there that can provide you up to 2-3 USB sockets on them... if more are needed just plug in a USB HUB into this adapter and you're all set. (Let's face it - no one uses PCMCIA anymore but they still exist on EVERY Laptop)
PC Users: Follow the same procedure as Laptop users after buying a PCMCIA socket for your desktop.
Total cost: 60 USD
Good luck and remember that workarounds are often better than solutions :-)
Ari