Windows 7: Dreaded USB device not recognized

Here's my problem.
I built my own system. Everything works great except for the USB.
Mouse and keyboard work flawlessly. I can connect up to 2 devices in addition to the mouse and keyboard. If I connect a 3rd device, I get a message saying the USB device isn't recognized and that it has malfunctioned. It doesn't matter which device either so I know it's not a hardware malfunction. The device manager shows it as an unknown device.
I've tried re-installing the USB drivers. Updated the BIOS. Cleared the CMOS. Nothing seems to help.

Any assistance with the problem would be greatly appreciated.

may be power related. system specs?

Since you built it, did you install the MB drivers that come with the MB. ?

Hello thoob, Welcome to the forum,

Try this out; General USB problems
After a USB device is installed and then removed Windows hides the driver this first part makes all hidden drivers visible.
Remove all USB devices
Click on start orb, Type Advanced System settings in the search box and click to go there.
Click on Advanced tab, Click on Enviroment Variables.
Under the window System variables click on New.
Type " devmgr_show_nonpresent_devices" (without the ") as the variable name and type 1 as the value.
Click ok 3 times to close the windows
Click on start orb, Type Device Manager in the search box and click to go there.
Click on View, Click on Show hidden devices.
Now you can uninstall all old and unknown USB devices.
The infcache.1 file is used to store information about USB drivers, the information in this file may have become corrupted or may cause windows to load the wrong driver or cause a driver not found message to be generated.
Deleting this file will force windows to generate a new infcache.1 file
Right click on the start orb and select Windows Explorer,
Select Computer in the address bar and search for infcache.1
Right click on the file infcache.1 (if you have more instances of Windows installed only do this for infcache.1 C:\Windows\System32\Driver Store)
Click on properties, Click on security tab, Click on Edit, Click on Add
Type Administrators In the window with the blinking cursor, Click OK
Place a tick in the box under allow to the right of Full Control, Click Apply, Yes and OK
Delete the infcache.1 file
Connect a USB device, but not the one you were having trouble with to make a new infcache .1
New Start the PC and try your device again.

The motherboard is a GIGABYTE G41M-Combo, intel duel core 3.2, 1TB HD, GeForce graphics card, 4 Gig ram. I have installed the MB drivers. However, I did this after I installed windows.
I do believe this could be a power issue but how the heck do I fix it?

Have you tried the above post?
It may look difficult, but if you take your time and follow it through you will find it is easier than it looks

You could also check that you have USB HiSpeed selected in the BIOS

No I haven't tried the above post. I will when I have some time. Also, I don't have an option in the BIOS to enable HiSpeed.

Try this hotfix
http://support.microsoft.com/kb/2529073

Ok, hotfix wouldn't work for some reason. I did try the above post by pooch. It didn't work. Here's what I have hooked up right now and these all work fine.
USB keyboard
WD mass storage HD
HP photosmart printer
WD 320 gig hard drive

If I connect another device on top of that, it says it malfunctioned or says it's not recognized. This number of devices is all I get regardless. I can mix and match but I only get 4 devices total. It really sucks.