I have the solution! To start the problem is a update that was released recently. The solution is to reset your motherboard. To reset your motherboard simply turn off and UNPLUG you computer for 5-10 minutes. This lets all the power drain out which turns the motherboard off which is how you reset it. When you turn it back on all of your USB ports should work.

For iPod users:
After going through the process stated above all of my USB drives worked properly except for my third generation iPod touch. I would try to restore it would get halfway through and then suddenly it would stop for five minutes and then it would say an error occurred after unplugging and reinserting none of my drives worked again. Turns out the problem is within the registry. A bad USB registry update causes this problem. I do not know how to specifically fix it but i do know it has to do with the registry. Make sure you do the motherboard reset first though or this will also not work.