Hey guys, I just spent two weeks with the annoying USB connected error, accompanied by a ghost USB device in Device Manager that would just not go away. I tried registry hacks, uninstalling/updating/disabling the drivers etc. I didn't go as far as reformatting or re-installing Windows because from what I read that never seemed to help. Also unplugging my computer and letting it drain of power didn't fix the issue either.
What DID solve my USB woes was the Windows 7 "HotFix". It's basically a hotfix for USB problems on W7. It's litterally the only thing that fixed this issue- so if you've got this problem look no further.
You can download the (x64) HotFix here:http://thehotfixshare.net/board/index.php?showtopic=17961
I'm sure the hotfix is available for x32 as well. The name of the hotfix is "Windows6.1-KB2528984-v2-x64" if you need to further search it.
Hope it helps!