Not necessarily. Not all USB2 ports are described in Device Manager as
'Enhanced'.
I had this guys same problem with my USB printer. I did not care,
because I don't print that much but it was annoying and I hate error
messages.
My MOBO has 4 USB 2.0 ports. They USBs showed up in Device Manager
but did not show up as Enhanced until after I updated the driver.
That was the ticket for me.
I forget some of the Microsoft reading I did about this, but I think
XP did not fully understand Enhanced until at least SP1 was
installed. I was on SP3 and still had no Enhanced. I put the link
somewhere above if you want to read it.
I had the dreaded red X error in the Other device section of Device
Manager next to USB Controller. That is where I updated the driver (I
let XP do it). The red X error went away as did the USB Controller
listed under Other devices section and then I suddenly had Enhanced
listed further down the list and no more balloons.