Be sure to unplug all USB devices, then visit the computer manufacturer, or the motherboard manufacturer's website and download, then install the latest motherboard/chipset driver for your system.
For information and other possible fixes on this issue, see the link below:
http://pcsupport.about.com/od/errorc/a/code-32-error.htm
Unfortunately, since you haven't given us any other information about your computer, such as make and model, age of computer, etc., that's about the best guess I can muster.
Hope this helps.
Grif
Operating system: XP Pro 64 Bit SP2
I just noticed this today however the problem may have been there for days, I've not had an occasion to use a flash drive recently. My camera and two printers, plugged into USB ports work.
The USB drive does show up in Disk Manager, will not let me change drive letter or format the drive. Says The operation was canceled due to an internal error.
In Device Manager I see a yellow error mark by Generic volume under Storage volumes. Actually there are two now, one for my printer (Unknown device). But the printer does work and communicates with my PC. The Device status for both is ... A driver (service) for this device has been disabled. An alternate driver may be providing this functionality (Code 32)
I don't remember installing or uninstalling anything recently. Haven't changed anything in Services. I do have Magic Jack and it is working. USB flash drives do not work whether MJ is plugged in or not. The flash drives work in another computer.

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