It could be bios-related...it is worth a shot. Meanwhile -- if you have the time ...
You can still order SP2 on CD from Microsoft -- it's just a shipping charge.
http://www.microsoft.com/windowsxp/d...s/default.mspx
I had difficulties with the downloaded version at first-- weird error messages, etc... once I used the disc it worked fine-- this is an enormous download-- if one line gets hosed on the way...
Personally I would suggest UNinstalling SP2 completely...
then run a good registry-cleaner app
then REdownload the file
Then REinstall
from a CLEAN BOOT in WinXP.
That way you have as little running as possible during install-- and the least chance if interference from say:
an AntiVirus
or a firewall or something. This IS after all a major Operating-System revision. You would not install your primary OS with a lot of "stuff" running. I have solved a LOT of weird problems by stepping back and re-thinking what I did in the 1st place.
USB is SO basic to Windows install that this probably is one stupid line of code-- buried amongst millions of lines in Windows--that you could spend more time/effort than you think possible --and STILL not find it.
If the BIOS fix does not fix this-- I'd try this next.