USB, Shutdown and Standby Problems on Macbook running Windows XP

For the past 3 years I've had the worst problem with my Macbook running Windows XP SP3. Every once in a while I have an issue with USB devices. The laptop won't recognize USB devices of any sort...on any port! There's absolutely no response from the OS at all!

Since this is Windows I'm talking about, the normal solution is to restart the computer. But, there are shutdown problems as well that complement the USB device problem. When I try to shutdown or restart the laptop, the OS hangs on the blue "shutting down" screen. Also, when I close the lid of the laptop, it won't go into standby mode!

I thought that the issue was simply due to not having rebuilt my Windows partition in three years, but the problems have persisted after I re-formatted and reinstalled everything.

One Google search recommended disabling the Bluetooth receiver device in Hardware Manager. (I was able to do that when I rebooted). Curiously enough, the Bluetooth device was not even listed in the Device Manager list when I was experiencing the issue! Further, my system log had his entry:

The local Bluetooth radio has failed in an undetermined manner and will be unloaded.

The source? BTHUSB. Very suspicious!

I will be monitoring the situation. If this is the solution (disabling the Bluetooth device), I will add a comment saying that it is a fix...at least for those who don't use their Bluetooth!