Same problem here on Toshiba Satellite laptop. No usb device is recognized. I followed the MS KB advice, but it didn't work. 
I tried the devices on other computers and they all work.
I tried booting into Linux from a live disk. Tried Ubuntu, Knoppix and Puppy.  Neither Ubuntu nor Puppy would boot. Knoppix started, saw in the boot process that a flash drive in the usb port was detected, but it was not accessible from Knoppix. QTParted and GParted could not find the usb drive.
I'm starting to think it is a hardware issue. This is my daughter's laptop and she had to have the motherboard replaced (under warranty) a couple of months ago. Everything was working fine until the usb trouble started about 2 weeks ago.
Anyway, if you are having this problem and none of the MS advice is working, get a hold of a Linux live CD and try booting into that to see if it is an OS issue.