Get it exchanged. Such things do fail.
As to trying to install drivers, DON'T INSTALL Windows 98 drivers on XP or else you get to fix that!
It's sort of like a light bulb. You can try in in a few sockets and if there is no light, you can maintain that all the sockets are defective since you have only one light bulb.
I bought a memory stick from Agenie (256mb) and it worked well for about a week. Yesterday, I was copying a movie over and something happened and I think the files which let my computer read it as a USB device were corrupted. The chip still works when I put it into my computer but my computer sees it as a security device and not as a drive. I have the driver CD but it did not help because when I say add new hardware and then click on the drivers the computer does not read them, i think they are only for win98. I dont know if there is someway to clear the chip and load the stuff onto it. I am pretty sure it still works i just need my computer to read it. Please help me. I am running WinXP. Thank you in forehand.