USB not working with WinXP guest on WinXP host

[jdaustin]

I've spent several hours trying to figure out getting the guest to recognize USB devices. Using a simple USB drive, I show that it has been captured by the guest. But the guest itself doesnt see it when I plug it in. When I select the device from the device menu, I get the following error:

Failed to attach the USB device Kingston DataTraveler 2.0 [0200] to the virtual machine WindowsXp.
USB device 'Kingston DataTraveler 2.0' with UUID {28cea79e-4d12-4fea-aa97-ac447890e3e2} is busy with a previous request. Please try again later.

Result Code:
E_INVALIDARG (0x80070057)
Component:
HostUSBDevice
Interface:
IHostUSBDevice {173b4b44-d268-4334-a00d-b6521c9a740a}
Callee:
IConsole {6375231a-c17c-464b-92cb-ae9e128d71c3}

I'm getting to my whits end here as I've tried a number of suggestions that have been posted here and elsewhere,

and I'm using PUEL version 3.1.2

[mpack]

Already answered in "Windows hosts". Please do not cross post again.

[Perryg]

This one locked.