To get rid of the 2d aborted install...you just have to edit the boot.ini file.
The reason that this has to be done is that the boot.ini file takes an inventory of all Windows installations (or attempted installations). To eliminate the entry for an install that did not complete...is an ordinary step that some users have to take.
Actually, we can also accomplish this cleanup by using msconfig, rather than direct editing of the boot.ini file.Sample Boot.ini File
This is a sample of a default Boot.ini file from a Windows XP Home computer.
multi(0)disk(0)rdisk(0)partition(1)\WINDOWS="Microsoft Windows XP Home" /fastdetect
If you go Start/Run...type in msconfig...click the boot.ini tab...and look in the window, you should see something close to what is above. Your entry will also have another line which may appear to be a duplicate of the last line above under Operating Systems.
The boot.ini tab has a button about midscreen which says "Check all boot paths." Press that button.
Better guidance than I can provide is found at http://windowsxp.mvps.org/bootopt.htm
Let us know how it goes
Now, for the USB situation.
Have you verified that all of your USB ports work? I mean...have you switched known working devices...to other USB slots...to see if the slot itself may be the problem?
You say that these items appear under My Computer...can you see the contents (or lack thereof) for each device? Can you remove anything from the drives? If there is an error message of any sort, please post it.