The method of cleaing out the system is to remove the files that contain the contents:
except the ezusbw2k.inf file) of the form *.inf file or *.pnf within the WINNT\INF directory.
The only file that should contain this string is the ezusbw2k.inf file. You may find others with names like oem1.inf, oem2.inf which the system will sometimes create. If it was created with an error, the system may tend to link to it over the ezusbw2k.inf.
Open Explorer and go into the winnt\inf directory and then search for the contents of this string. Remove all files that contain the string noted above except for the ezusbw2k.inf file. Replace that one if it is corrupted.
The file name the system is selecting (usb.inf) should not have this string in it. If it does it is corrupted and needs to be restored from a proper system file (this is a win2k file not a Cypress file).
Only use the REV E version of the chip. (The last line on the 128-pin chip starts with an E). Earlier parts were all engineering samples only and should have all been replaced by now. Any parts from 2002 should be Rev E.
The chip can also be reprogramed by loading vend_ax and then select the EEPROM button. Under the examples/fx2 directory should be an eeprom_images directory. Select the file Fx2_C0.iic. It should reset the EEPROM to the original contents.