At first I thought it was a USB bug(I am running SP2) so I uninstalled all the USB drivers/hubs and when windows finds the new hardware and the driver wizard pops, searching for drivers automaticly ends in windows saying cannot install device because no software was found for the device. This happens on all of my USB hubs now, and I also noticed that the PS2 mouse I installed to use while I get the USB working again also has no drivers, and attempting to update the drivers for the PS2 mouse from Unknown ends in again the same problem "cannot find any software for this device"
I found seemingly the exact same problem in this thread
As far as I know the workstation is adware/virus clean with no other known problems
And nothing major has changed with it that I can recall since getting it. (its a Dell workstation)
I have been applying Microsoft automatic updates