update:
Just installed windows 7 32 bit, changed USB cables , swapped USB ports , tried PCI card USB ports, fresh Virus OS install; still no joy and doing the exact same thing.
Is there anything else I can try before I'm forced to go back to dodgy cracked software versions ?
For your entertainment, here is a video of said strangeness!
http://www.youtube.com/watch?v=V71FRnVMRmk