USB Flash Drives (thumbdrives) fails to install

Recently completed an upgrade from MCE 2005 to Home Premium. I thought the
install went well, however, everytime I attempt to use a USB flashdrive it
fails to install the correct drivers and I am left unable to use the device
(it fails on each attempt, regardless of the flash drive, of which I have
attempted to use various capacities and manufactures -- as well as USB 1 and
2.

After the flash drive is inserted, it recognizes the devices insertion, and
then attempts to install the driver but fails -- I receive an error saying
"Disk drive... the parameter is incorrect" it then advises to go to the
manufactures site for drivers (obviously, this should NOT be an issue).

After it fails to install the driver, Device Manager identifies it as an
"Unknown Device". I have tried to reinstall the driver, rebooting, the
works... Has anyone found anything similar and more importantly, a
work-around of fix?

Thanks in advance!