Windows XP uses its own built-in drivers and it manages the installation of external USB devices by its own.
 
Please disconnect all external devices from your computer (except mouse, monitor and keyboard) and locate the file c:\windows\inf\infcache.1 on your computer and rename it to "infcache.1OLD".
 
You might need to give the user account file write and read permissions for this file. You can change these settings via the file's Properties/Security/Advanced.
 
The file is a system file and might be hidden.
 
To resolve this problem, follow these steps:
1. Click Start, click Run, type "explorer" (without the " "), and then click OK.
2. Locate the following folder: C:\WINDOWS\inf
 
The inf folder is a hidden folder. To view the inf folder, follow these steps:
 
a. On the Tools menu, click Folder Options, and then click the View tab.
b. In the Advanced settings list, click Show hidden files and folders under Hidden files and folders.
c. Click Apply, and then click OK.
 
Now the file INFCACHE.1 should be visible. Please proceed as described above.
 
Now reboot your computer (with still no USB device connected) and connect the HDD as the only USB device to a USB port on the back of your computer if WINDOWS has started.

If it doesn't help you  please try to locate the file "usbstor.inf" (normally in C:/WINDOWS/INF/USBSTOR.INF) and point the dialog box which is asking for a driver to this file:   C:\windows\winsxs\usbstor.inf 

After connecting the device to your computer, if there is still no installation wizard with a dialog box asking for a driver, right-click on My Computer, select Manage, click on Device Manager and click on "+" in front of USB controllers. Right-click on the unit corresponding to your unrecognized (Unknown) device (can be marked with ! or ? as well) and select Update Driver. Select the option No on the first screen and Advanced on the second screen. On the third screen select Browse and find the file usbstor.inf, where it asks you for a driver.