Mine has been doing the same since Astrofest.
I've run it on vista as well as Win7, same dramas.
You don't have to reboot though. Just close PHD using Task Manager, unplug your cables from the puter, then put them back in again.
I know when I'm going to get an error because first Windows sends a message that "this device can work better on a USB2 port".
I did remove PHD from my system and downloaded a fresh copy of 1.14. Worked fine for a few hours, then it packed it in.
I do feel that it's a problem with the camera, not the software.
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