Have you tried turning off the computer and then back on? I had a hard time installing an USB printer. No matter what I did, I could not get it recognized by the computer. In my case, cold boot solved the problem. Warm boot (control+alternate+delete) didn't work. You may want to try it.
You may have an IRQ conflict with another device in your system. Do other USB devices work on the same port? You can reassign your USB's IRQ in BIOS (I think) if it is an IRQ problem.
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