XP recognizes but does not install Western Digital 750 gig Caviar SATA external drive coupled with USB

I have recently bought a new Western Digital 750gb Caviar SATA external drive and it is recognized by my computer but it cannot be installed with USB in a Bytecc box. I know that USB devices are PnP and they also support the plug and play features. The problem is that this WD 750 drive does not work in the newer HP 2800 Ghz computer but it is working fine in HP 1800 Ghz computer? Normally, the new wizard opens and then it is not able to locate the proper driver. I have already confirmed the driver cache and the USB 2.0 drivers that are already present. I also changed the Western Digital driver to NTFS and also downloaded drivers from their website but nothing seems to work. So can anyone tell me how do I make this hard drive to get recognized in the new computer? Thanks

You should know that Windows XP Service Pack 3 is still in beta product line and so there are numerous testing done on it. So, it seems to me that the only major issue that one can guess is that a part of the SP3 is conflicting with a hardware component in the HP computer and if there is a missing *.inf file then it could be the reason for the failure as well. What report do you get when you open diskmgmt.msc?

Even I am facing this same issue, I am running Windows XP with Service Pack 3 and it wont install the "usb to ata/atapi controller" if I connect any kind of external hard drive via the USB port. I think that it is a driver issue that we need to have and I have been looking for it from quite sometime. Can anyone give any solutions rather than reinstalling Windows XP?