QUICK FIX!!!!
Ok I have had the same problem with this WD Passport USB Drive but just fixed it. My GF's computer runs it fine and it is crappy and older than my desktop. I was getting the "device not recognized" error. I always use a USB extender cable for my USB devices so I don't have to go behind my computer every time. EVERYTHING works on it except this WD passport for some reason.
I plugged the HD directly into the USB port on the back of my computer and it worked fine. There must be something odd about the USB cable that comes with the device. These problems tend to be caused by the connection. Maybe a new cable will help people out. I don't know for sure but something seems janky with these cables since a LOT of people have this problem.