HP PSC and windows explorer problem

Hey all...I'm getting this very odd problem.
I have a HP PSC1210, and whenever it's plugged into USB and drivers are installed for it, it takes 5 minutes to recognize all the files/folders in the "my computer" portion of windows explorer. And until it's recognized, IE will not work either.

The problem goes away when the PSC is disconnected. I've had this PSC working fine a couple days ago same config and all, I recently scrubbed the OS and put on the exact same one, Win XP with SP2. I'm using the latest and only drivers from HP, and have downloaded them three times and done full driver scrubs as well.

Anyone have any ideas, or comments?

*edit* more info, in eventvwr, I get 2 errors when IE and windows explorer "come too" or stops giving me the damn search flash light for 5 min:

ESENT
wuauclt (1680) The database engine stopped.

ESENT
wuaueng.dll (1680) SUS20ClientDataStore: The database engine stopped the instance (0).

I know that without the HP software/drivers installed, the printer and copier will operate, but not the scanner...which means that XP doesn't natively support the scanner portion of the multifunction device. You could try posting your question about compatibility at the HP IT resource center forums here...

http://forums1.itrc.hp.com/service/forums/home.do?admit=716493758+1105018675173+28353475&forumId=1