USB / hardware problems, caused by MS updates!

I have seen some warnings about problems with USB devices, caused by MS Service Pack updates, namely Service Pack 2 for Vista, and Service Pack 3 for XP. These just came out, and they are listed as a single file bundled "update", with no opportunity to select from the individual files or to opt out of whatever is in the one large file. When I saw that I was downloading Service Pack 3 (XP), I cancelled the download, but too late. My perfectly good working PC was already corrupted. Now, I cannot use my mouse and a working USB VOIP dongle ("Magic Jack") is not recognized. This is ****! I've been pulling my hair out over a similar printer problem that occurred on another PC, when I tried to plug in my digital camera! I finally got the mouse back by trying another port, but USB is supposed to be able to chain up to 127 devices, and I can now only get two or three to work, at most!
I am absolutely done with Microsoft Updates! I plan to use other options for online security. Microsoft had XP working so good, and now it seems they are just messing it up and trying to kill it off. What's up with that?
I have read about this new USB problem but apparently MS is keeping silent on it and has offered no fixes. I think that they are trying to cripple the new VOIP dongles so that they can advance their Messenger product into the VOIP market.