I have Pavilion dv 4. Two days ago my laptop without any changes to settings, no upgrades, no new software/hardware; stopped recognizing any usb device (and even DVD drive). I couldn't use my wired mouse, or printer or flashdrive. One evening everything was fine, the next morning I got a message saying "USB Device Not Recognized".
I did defragmentation, virus checkup, cleaned disc C (it had only 3 Gb left) just in case - no success. (I also worked with System Restore and Shut down completely 2-3 times - nothing good)
To cut the story short - I got the cure in the Net - Simply shut down laptop, unplug it and take the battery out for a few seconds - which I did. Praise God - everything started to work again!!!
The Net is full of suggestions and some of them are quite complicated, I am sure glad I didn't waste time on those for my case.