Maniak79's suggestion to disable the USB2 driver worked for me.
I recently got a new printer for my laptop. The printer is an HP Deskjet D4360 and the laptop is a Toshiba Satellite A series running Vista home.
When I first installed the printer it worked fine, but the next day I started getting this USB device not recognized error. I searched the internet for a solution and ended up trying most of the suggestions in this thread as well many suggestions from other sites.
Disabling this driver is the one that worked for me. Thanks for the solution, this problem was driving me crazy.