The following happened to me when installing a USB multicard reader when I was running Win 98SE.
Plugged in reader
Computer played merry hell and crashed.
Looked at driver and found that it was in two parts
Part one is the basic driver
Pert two is a fancy program that loaded all sorts of icons for the individual cards
Next time around I loaded only the basic driver.
All worked well .
Try taking out the driver, reboot and plug in the device on its own. see what happens.
Then investigate the driver make up.