100% CPU use when new usb device plugged in – services.exe / windows server 2003

On my server I am trying to install a new usb drive but all that happens is the system starts using huge amounts of processor cycles with services.exe. On closer inspection with process explorer there is a thread with umpnpmgr.dll using most of the services.exe processor time.

I left it for a half hour and still nothing happened.

Rebooted and tried again, same result.

Tried a different usb drive, then a flash drive but still same issue.

Tried updating driver but it said the update function was already in action.

I have used process explorer to kill the thread now so the server can still perform its intended functions.

Any device that was previosly installed before this began happening will still work but any device new to the system will now work.

My question(s) is/are:

Is there a way to manually install the device into the registry so windows thinks it is a previously installed device?

Or can this problem be repaired through anything other than a reinstall? To do a reinstall would mena backing up large amount of data which is hard with a usb drive and insufficient space on any other network machine.

Any help would be greatly appreciated.

William