Have you tried different USB ports?
My dad has some USB ports on his USB hub which just won't work correctly.
Did you install all other drivers, like mainboard drivers, including USB 2.0 drivers(yes, they are usually seperate)?
Did you try disconnecting the device, kicking all drivers out, restarting, then installing drivers from disc and then reconnecting the device?
That's all I can think of for now, generally installing drivers when Windows asks for it is not recommended by me, always abort and use the driver installer if there is one. If there is none, ok, follow Windows.