Installed 32-bit XP and Windows 7 using Virtualbox. The laptop (Older HP elite) was pre USB 3.0. It is very weird...the PC that works is newer with USB 3.0 ports.

Thanks for the suggestions, very much appreciated.

Heck, I even threw VBox on a Linux laptop I have..same error. The USB light comes on on the MSC, Vbox sees the device and connects. Hit upload/download and it throws an error and aborts.