Thank you very much for posting your solution! I had the exact same problem and I can see a few other people around the Web reporting similar issues. Rolling back to the WinXP default driver worked perfectly for me.
WinXP users should also note, though, that if you format Western Digital "Advanced format" drives in WinXP, WinXP will not "align" the NTFS formatting correctly, resulting in slowdowns.
Solution 1: if you've registered the drive with WD, you can (a) format the drive in XP, (b) download the "WD Align" tool, and (c) use that to correct the formatting. Best to do this before filling it with data.
Solution 2: use GParted for formatting the drive, using these instructions
. Make sure to choose NTFS.
Another smaller problem is that WinXP can only use the first 2 TB of a single partition. This drive is very slightly over the limit. To solve this, just make two smaller partitions, or one big one that's a few MB short of the drive's total capacity.