Had the same problem...

[paranet]

and solved it (twice - on two win xp pro computers) the following way.

1. start the install as the maual describes.
2. wait for the prompt to connect the device and do so - the computer will let you know there is an unknown device connected - do not panic.
3. follow the popup hardware install wizard - define where to find the driver - on the cd - a file called: wceusbsh.inf.
4. after the hardware is installed, follow through the installation process.

it worked for me twice, after having problems with it.
let me know whether it works...

[paranet]

and solved it (twice - on two win xp pro computers) the following way.

1. start the install as the maual describes.
2. wait for the prompt to connect the device and do so - the computer will let you know there is an unknown device connected - do not panic.
3. follow the popup hardware install wizard - define where to find the driver - on the cd - a file called: wceusbsh.inf.
4. after the hardware is installed, follow through the installation process.

it worked for me twice, after having problems with it.
let me know whether it works...

[paranet]

...reffering connection problems...


ooooops.

silly me...