This link will open the M$ KB webpage which explains the various error codes generated by the Device Manager in Windows XP:
http://support.microsoft.com/kb/310123Long story short, this is how they suggest you fix the problem:
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Recommended resolution
Reasons for this error include a driver that is not present; a binary file that is corrupted; a file I/O problem, or a driver that references an entry point in another binary file that could not be loaded.
Uninstall the driver, and then click Scan for hardware changes to reinstall or upgrade the driver.
On the General Properties tab of the device, click Troubleshoot to start the Troubleshooting Wizard.
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IOW, the driver you've installed might be damaged or corrupted, so you should try to uninstall the driver; open the Device Manager, then double-click on the PCI card with the problem, click on the Driver tab, then click on the Uninstall button near the bottom of the tab, and follow the prompts to remove the driver.
Next, click on "Action" in the Device Manager Menu Bar (which is directly below the Title Bar) and select the "Scan for hardware changes" option, which is at the top of the list. Once you do that, Windows will scan the system to find the new PCI card again. When that happens, you shouldn't have any problems reinstalling the latest driver for the card.
If all goes well, you can ignore the remark about starting the Troubleshooting Wizard...
Just FYI, the age of the driver probably has no effect on how well it works with SP2; MOST of the drivers in Windows (whether embedded or provided by an OEM) pre-date SP2. Most of the changes introduced by SP2 improved security or fixed existing bugs; the only real driver improvements in SP2 were related to new technology, such as the introduction of dual-layer DVD burners. By the time SP2 was released, support for USB 2.0 was old news...
Keep punching, jonhyde; I truly believe that you're closer to fixing your system than you might realize...