External USB HD (1 TB) and memory stick work OK on w'7

,
Speed is quite OK (there were some bad reports on this), good enough for watching movies.
But as far as XP Professional is concerned, it behaves funny..

According to USB server all is supposed to be OK, but there are no icons (sound prompt was there, but there were no drivers installed as is usual for USB device).. so HD can't be used.
Obviously, this is OS issue/problem.
I updated driver with the latest version (0.050 May-21-2012), but problem persists.
Anybody knows what is going on here?
..
Later I will try to use serial port (and what's most important to me, parallel port with some bit-banging.. I need to control individual IO's.. .)