Sounds like a USB problem to me, maybe it can't tell if you have USB 2.0. Have a look at the following link:
USB 2.0 News and Information
Otherwise, you could maybe try unplugging the USB cable for your printer and then plug in the Wireless Network Adapter, just in case there's a conflict.
Not sure if I even have USB 2.0. But this adapter worked great before the install! And I have everything unplugged from the other USB ports and it still wont work.
Update: Just reinstalled Windows XP Home Edition Service Pack 1, and it's a no-go. Still getting the same error as before. Tried every single USB port, nothing works. Going to try Service Pack 2 again. But last time I installed Service Pack 1, (Was around a year ago I believe) the same USB wireless device worked perfectly and I installed service pack 2 on that pc using automatic updates, and now I cannot do so.
Update: Just installed Windows XP Service Pack 2, and it does not work, still. It works fine on this laptop, the found new hardware wizard pops up and it asks for drivers.. I have no ideas left of what to try to get this to work!
Edited by StealthSoul, 23 December 2007 - 05:53 AM.