do you have trouble with other usb mass storage devices ? does it recognize other usb devices ? have you installed windows service pack 2 ?
i had a similar problem the first time i plugged in my exterior hard drive. you can try a hard reboot : turn off computer. unplug computer from wall. press and hold the power button for about 30 seconds. reboot computer as usual. also i think sp2 is necessary for usb 2.0 and you can have trouble with larger usb drives if you don't have it, although i could be remembering wrong.
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