Either your computer is infected, or some device driver has been badly installed.
You could maybe restore your system to a time before this started, but it would perhaps be better to first investigate this strange device.
To do that, in Device Manager right-click on the device and choose Properties, then
to the Details tab. In the Property drop-down box, choose Hardware Ids.
It should look some thing like this : USB\VID_0BDA&PID_8187&REV_0100 (sometimes more than one is displayed).
[EDIT]
The Hardware Ids you found look to be semi-legitimate, but heavily garbled.
"Worm" probably stands for Write-Once-Read-Multiple. Such Ids are generated for example by USBSTOR.SYS.
In your case, this is clearly an IDE drive that is causing the problem. This can be either a CD/DVD drive that has gone bad or a hard disk (if you have IDE/ATA disks). As I believe that you would probably have noticed a missing hard disk, I would guess that the problem lies in the CD/DVD drive or in the driver.
As a test, I would open the computer (if you can), then disconnect the CD/DVD drive to see if the problem disappears. Disabling it in the BIOS might also be enough.
In any case, I would suggest upgrading to XP SP3 as soon as possible. This might refresh a malfunctioning driver and shock XP into working correctly. There are of course many other reasons to update to SP3.
But take serious backups before upgrading and ensure that you can reinstall XP and all applications. The best backup would be to take a disk image of the system drive.
If the upgrade fails, your computer may become unbootable. This may be because it was in fact really infected. In this case the best solution is to reformat the hard disk and reinstall everything.
