Rob - I am in your exact situation.
I have the same issue with my XP system, with the MX53 QSB as well as other USB devices. I have to install devices manually.
I used the Android Settings | Applications | Development | USB debugging setting unchecked (not debug mode).
When you connect the USB cable, Turn On USB Storage on the QSB (button on screen when cable is connected).
For the "Windows Found New Hardware Wizard", select "install from specific location", include "C:\Windows\INF" and hit "Next". I have to do this 3 or 4 times (repeat same steps for each interface).
Result is that I now have 3 disk drives showing in Device Manager, as well as 3 Unknown devices. The 3 drives show up in Windows Explorer: "sdcards(E:)", "Removable Disk(F:)", and "Removable Disk(H:)". I can create folders, copy files, etc., on the "sdcards" drive, and see those files from the QSB Android Terminal Window by navigating to /mnt/sdcard. Selecting either of the other 2 drives in Explorer shows the "Please insert a disk" dialog.
I still hope to find answers...
I don't know why the 3 Unknown devices are showing.
I cannot get the QSB to connect in Debugging mode (QSB always shows "Turn on USB storage"). Running "adb devices" only shows the emulators that I have running. It has never shown the QSB.
I have yet to be able to install my hello_world.apk. If you get this working, please post the "how to".
I read Gunjan's replies, but need more info. In my case, I can see the E: drive (the only drive that was accessible through Win Explorer), navigate to it in cygwin ("/cygdrive/e") - but have the same accessibility as I had with Windows Explorer.
Again - I'm hoping to find a "how to" with some detail to reduce the learning curve.
- Tom