USB Disk not mounted (KB 940199)

When I attach a USB memory stick to my machine Windows attempts to find new
drivers online, and then after failing it tells me that I need to download
"Update for Windows Vista, 32-bit versions (KB940199)." When I try to run
this hotfix the executible creates a dialog that says, "The update does not
apply to you system".

I can see the "Disk Drive" device added in the device manager however there
is another unknown device under "Other Devices" with the Hardware ID of
"STORAGE\Volume."

If I go to Disk Management I can see the disk and the partition it contains
but when I try to assign a drive letter to it Windows creates the error
dialog "The operation failed to complete because the Disk Management console
vierw is not up-to-date. Refresh the view by using the refresh task. If the
problem persists close the Disk Management console, then restart Disk
Management or restart the computer." After a refresh the problem does
persist, as well as if I perform a restart of the machine.

Has anyone run in to this issue, and if so have you succeeded in fixing this?

Thanks,
Devan