Folks- I don't know if there is a windows bug on this or not... Certainly lasting this long it would seem to be more complex. Here's a little bit of how USB works which may help...
When you plug a new USB device into a PC with windows, there is a standard enumeration process that is supposed to happen (a standard defined by USB.org, not by MS.) There are several 'universal' device profiles, that windows can install if the detected device fits that profile (an example- you plug in a USB memory stick, and windows recognizes it and installs the universal mass storage USB Driver... and your device works.)
If there is a bug, it would seem to be in how these GPS devices are responding to the enumeration commands from the USB master (the PC) or in how windows is reading the response from the device. So, yes, it could be a windows bug, or it could be a device bug... although an issue arising from a windows update is certainly suspicious!
Now, part 2: I don't know, but suspect there is no standard GPS USB profile (most if not all of these gadgets are probably unique as to their functionality,) thus the supplier of the GPS device would typically supply an install disk with their proprietary USB device driver. I did not see any mention of anyone installing these...