It's referring to USB 2.0 ports, which have a max speed of about 480Mbps, whereas your USB 1.1 ports have a max speed of 11Mbps. Hopefully you don't have USB 1.0 ports, which have a max speed of about 1Mbps.
Anyway, it's a hardware only upgrade which requires either a new motherboard with a USB 2.0 controller on it, or that you buy an add-in PCI card with a USB 2.0 controller on it.
Personally, unless you're taking uber high resolution photos and are storing them in an uncompressed format, it's probably not worth the money and hassle. The 11Mbps of USB 1.1 should probably be plenty, since Windows doesn't tend to use persistent connections when copying files. Which means the only time you'd see an increase with USB 2.0, is if you were moving large files. I'd just ignore the little popup. Think of it like a popup ad on a site.
When transferring pictures from my camera (Fuji FinePix S7000) to my computer, I get a pop-up saying, pictures can be transferred faster using a high speed usb driver. Is this something availible for free on the internet or something that must be purchased? I have done a search but couldn't find anything. Thanks, John
WinXPpro sp2 IE6