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When I start my guest OS, or attempt to attach the USB device via the Devices menu, I get this error:

Failed to attach the USB device Silicon Labs CP2103 USB to UART Bridge Controller [0100] to the virtual machine Windows XP - Application Development Environment.

Failed to create proxy device for the USB device.
(Error: VERR_GENERAL_FAILURE)

Details:
Result Code: E_FAIL (0x80004005)
Component: Console
Interface: IConsole {6375231a-c17c-464b-92cb-ae9e128d71c3}

I have tried restarting VirtualBox, but to no avail. How can I fix this?

VirtualBox 3.2.10
Host OS: Windows XP
Guest OS: Windows XP

EDIT

I was able to get it back by rebooting the host OS. Is there a way to clear this error without rebooting the host?

I've had similar issues with my 16 gig flash drive. Sometimes unplugging the flash drive and plugging it back in fixes the problem and allows the guest OS to use it. Sometimes that won't work and a host reboot is required. I'm not sure exactly why this happens or what causes it. But hopefully it will be corrected in the next VB version, which should be soon. Good luck.

I just had this problem twice.

I upgraded virtual box then had to install the VirtualBox Extension Pack to make USB work.
I upgraded guest additions and had to disconnect and restart image after upgrade. This happens during upgrades when devices are plugged in and still connected on the host.

As example, my iPad was connected just after a sync, I updated the guest extension, and it wouldn't connect. Unplugging the usb and restarting the image fixed the problem.