My problem sounds like the same one Lightingtech had back on January 7th 2010, although I wasn't willing to erase all the USB drivers on the computer.
So to reiterate my problem is that I load the software on my new thinkpad with windows XP and when I plug in the USB cable with the Pico logger attached microsoft pops up a window asking for the installation CD, yet the software is already on the machine. First time I just closed it and went to the software already on my desk top, but it doesn't see the USB port either. So the second time I went through the installation and it failed. So the third time I took the software off the machine and let windows install it and it failed again.