I also have the same problem. The error message says that the "USB Device malfunctioned and is not recognized by Windows."
We have already tried with different laptops, but the problem still persists. The error message continue to advise that if the problem continues, the device must be replace. We took the stick back to the service provider and at that time it did work, but back home the same problem. I have other axis usb devices that is working just fine. This is a 16G.