I am having a similar issue. All USB ports are disfunctional with the exception of the two on my monitor, of which the monitor is plugged into a port on the back of my machine. It's a Dell XPS 400 and it has NO OTHER mechanism for running a keyboard or mouse except for USB -- hence why uninstalling/reinstalling isn't really a viable option because once things are uninstalled, I have no keyboard or mouse.
Updated BIOS, chipset drivers, powered off things, even jumpered the CMOS -- nada. And I know it's Windows XP because even with the ports working on my monitor, they will on occasion suddenly stop working...no power to the devices.
I know the ports are good as they work via the BIOS. And here is the REALLY weird part -- if I plug in a flash drive in a port and reboot the machine, when it boots back up, it sees the flash drive. However, if I remove it and then plug it back in -- nope...not recognized.
People all over are having this issue, but nobody is coming up with a solution. It seems sad to see people tossing their computers when it's got to be a Windows issue...there is power going to these ports, but the OS does not recognize them, even though the device manager says everything is okee dokee.
HELP