If your PCMCIA slots are working properly, updating to SP1 level will allow the system to recognize the USB 2.0 cards. Sorry for the late reply. You should have posted your own thread or people will not read it as they only check this one when they need the driver. I've not checked this thread for quite a while either.
Also, folks, the Compaq driver that ilway posted above is intended to fix some problems with some Compaq models. You can download this [url=ftp://ftp.compaq.com/pub/softpaq/sp25001-25500/SP25052.txt]Text File that explains what the driver does before applying it to your XP system. Drivers provided by 3rd party vendors will only work best on the models that they are written for and may cause incompatibility problems to other models. Best thing is to apply XP SP1 or stick with MS drivers unless you're sure that the drivers are for your model.