USB Drivers fail to install. Error 1078 Service name already in use

[gbmarc]

Tried to install a brand new USB 2.0 Fantom1TB drive today and failed. I got an error saying there was a problem installing the driver.
The device lists in the device manager, but if I look at the WINDOWS/Setupapi.log it shows that it couldn't install the drivers because it thinks the service name is already in use. Here's what the log says:

#I123 Doing full install of "USBVID_0424&PID_2228°20128B005".
#-035 Processing service Add/Delete section http://USBSTOR_BULK.NT.Services.
#E279 Add Service: Failed to create service "USBSTOR". Error 1078: The name is already in use as either a service name or a service display name.
#E033 Error 1078: The name is already in use as either a service name or a service display name.
#E275 Error while installing services. Error 1078: The name is already in use as either a service name or a service display name.
#E122 Device install failed. Error 1078: The name is already in use as either a service name or a service display name.
#E157 Default installer failed. Error 1078: The name is already in use as either a service name or a service display name.
#I060 Set selected driver.
#I125 Installing NULL driver for "USBVID_0424&PID_2228°20128B005".
#I121 Device install of "USBVID_0424&PID_2228°20128B005" finished successfully.

Now I'm a Mac guy, so I don't have a clue what this Service name is or how to get rid of it. A quick search indicated that it can be caused by a left over entry in the Registry. But which one? I already deleted a USBSTOR key in the 'services' branch but with no joy. In fact I think it made it worse. I noticed another USB device not loading properly now as well.

Anyone seen this and know what to do?

Mark