Computer won't recognize USB devices

Computer is a Dell OptiPlex 3100
OS is Win7 Professional

For some reason, ANY USB device I try to install is not recognized. Only existing USB devices.

I first noticed it when I tried installing a USB stick. In device manager I get an error 28 under properties. At the time I pretty much shrugged my shoulders. I should point out that the same USB stick work fine in other computers including an identical computer to the one I'm having trouble with.

Tonight I tried installing a different keyboard. I have the same problem..Windows doesn't install the driver.

Other USB devices (mouse, old keyboard, USB stick of a different brand, etc) work just fine.

It's almost like something is preventing Win from recognizing ANY drivers. Something disabling plug-and-play?

I've Googled until my head spins. I sure hate to call Dell (PC is still under warranty)
 
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