Your computer may stop responding (hang) while Windows is trying to locate software after you install a Plug and Play device (such as a mouse). When this issue occurs, the computer hangs when the New Hardware Found window is displayed.
There is a problem in the installation of devices such as a mouse, keyboard, or Universal Serial Bus (USB) controller and USB Human Interface devices such as a USB mouse, USB gaming pad, or USB joystick.
To install the device:
Remove the device from your computer.
Follow the manufacturer's instruction to install the device driver for the device.
Connect the device to the computer again.
Let the Add New Hardware Wizard configure the device. The Add New Hardware Wizard is available in Control Panel (click Start, point to Settings, click Control Panel, and then double-click Add New Hardware).
Microsoft has confirmed that this is a problem in the Microsoft products that are listed at the beginning of this article.
Some device classes are marked for silent installation because user interaction may not be possible when a device of those classes is being installed. For example, when you install a new keyboard, you may not be able to respond if Windows prompts you for an installation path. By having the keyboard class device installed silently, no prompt is displayed.
However, not all devices have device drivers included with Windows. In some cases a compatible (but not necessarily full-featured) device driver may be selected for installation. You can tell that this has happened if the device is shown in Device Manager with a green icon. If a better driver is included with the device, you can install it after the initial configuration.