Windows 2000 has some serious problems with USB and other hot pluggable drives. I firmly believe that these are deliberate - i.e., that Micro$oft are carefully not fixing them so as to try to force you to spend another $250 of your hard earned on a copy of XP Pro.
This isn't quite what you were looking for, LunarMist, but just so that you don't feel quite so all alone, here is the one that bugs me.
When I eject a Compact Flash card, W2K throws a hickey fit, complaining bitterly that I ejected the drive without stopping it first, and asking me if I'd like to have a nice little "eject" button on my system tray. Sure. Why not?
Because the bloody thing is useless, that's why not. You have two choices.
(a) Use the stop function. That lets you eject the CF card without any stupid error messages. But you can't use that drive again without rebooting! It's totally rooted until you restart the system. How stupid is that?
(b) Ignore the eject button. Just pull the flash card out and click OK when Windows cracks a Nellie on you. Insert the next CF card and it works just fine. But be sure not to let the system go into standby mode without clicking "OK" first, otherwise the drive becomes unusable and you have to reboot again.
This was more or less the state of play with W2KSP3. Foolishly, I assumed that SP4 would fix it - SP4 was supposed to sort out all the USB2 problems, after all, so I thought they would fix this particular stupidity too. No such luck. Under SP 4 it is exactly the same.
Micro$oft $uck.
By the way, it doesn't matter if you use a USB 1.x, USB 2.0, or PCMCIA connection for your flash card. Windows 2000 buggers them all up with equal inability.