usb 1.0 issue with XP sp2

If I insert a 2.0 usb flash drive into one of the two ports it will be recognized and installed and assigned a drive letter. Then when trying to open the drive a popup window opens stating to “please insert a disk into drive x:”

Yet if I reboot with the drive in the port it will open normally. And stop device properly and try to reinsert after several moments it will again install and again popup the same message.