You could check the BIOS settings: Switch on USB keyboard and mouse support if it isn't enabled.
Common BIOS entry Keys
F1
F2
DEL
ESC
F10
A user will know when to press this key when they see a message similar to the below example as the computer is booting. Some older computers may also display a flashing block to indicate when to press the F1 or F2 keys.
Press to enter BIOS setup
Tip: Hold a Key down, this will cause a stuck key error, which may allow you to enter the BIOS setup.
How old is the PC.
A damaged or insufficiently charged internal battery can corrupt CMOS or BIOS settings. Try a new one.
Here is a link to a handy little tool. Save it to the desktop.
http://www.usbman.com/WebDrivers/Intel%20USB%20System%20Check/USBREADY.EXE
Using Intel USB System Check
After the download has completed, browse to the file usbready.exe and double-click it. A Welcome to Intel USB System Check message will appear on the screen.
Click Yes . The Intel USB System Check program will check the computer system for USB compatibility.
Computer systems with full USB support
If the computer system has everything required for USB to function correctly, a ?This system has full USB support? message window will be displayed. This message window has green squares with the word "YES" in them.
Computer systems without full USB support
If the computer system does not have everything required for USB to function correctly, a ?This system currently does not have full USB support? message window will be displayed. This message window has red squares with the word "NO" in them.
Click Details, and then read the following summaries that are displayed:
System Software Support
System Hardware Support
USB Driver Support
Let us know how you get on.
< If you have an XP CD >
Check to see if it is Hardware or Sofware related. If you can read the USB by doing this it is a sofware problem.
Insert the Windows XP CD-ROM into the CD-ROM drive, and then restart the computer.
Click to select any options that are required to start the computer from the CD-ROM drive if you are prompted to do so.
When the "Welcome to Setup" screen appears, press R to start the Recovery Console.
1: C:\WINDOWS
Which Windows Installation would you like to log on to
(To cancel, press ENTER)?
After you enter the number for the appropriate Windows installation, Windows will then prompt you to enter the Administrator account password.
Make sure that there is a file that you recognise on it and insert a USB Memory Stick into the rear ports and see if you have access. Type in dir E: or keep going until you find the USB key.
Download and install all Device Updates EG: Chipset USB.