Maybe the clue is that swap. If you are swapping A and B to boot the diskettes, then XP may complain and not noe the drive. Try plain, boring setups. The A: drive must be A: on the cable, not swapped and the BIOS must support XP or the floppy may vanish. In closing, is there a motherboard driver package you haven't installed?
I just re-loaded Windows XP. Have it on a partition with Linux Mandrake (one on each side of their respective partitions). Everything works, Norton's Internet Security, Spybot Search and Destroy and ALL my peripherals....but not the floppy.
It is recognized by my Bios Post (enabled Floppy Drive Seek and Swap through Advanced CMOS) but Windows XP does not recognize it. The Controllers are working properly but the device manager does not see it...not even searching for new hardware or unplugging the pin connectors and re-plugging them to force Windows XP to recognize new hardware will correct the problem....
Please give me some ideas....