Well, as far as I know, you need three things to get them to run at USB 2 speeds:
1) The BIOS must have USB 2 enabled with speed set to HiSpeed
2) The motherboard chipset drivers must be installed
3) The Windows drivers must be installed
You've just checked #1 and done #2. Windows XP SP2 has the USB 2 drivers built into it so you should have those as well. You could take a look at your USB drivers in the Device Manager and see if they look right and are enabled. We both have the ICH5 and mine look like this:

The Enhanced PCI to USB Host Controller is the USB 2 part.
Do you get this problem on all of your USB ports including the ones on the back of the motherboard. Sometimes bad cables can force USB 2 to slow down to USB 1 speeds. It's happened to me.
I'm not sure what else to do but if nothing above helps, you could post your DXDiag information so I can make sure your USB 2 drivers look ok. You can do that by clicking "Start", Click "Run", type in
dxdiag, click "OK", then click "Save All Information" and save the dxdiag.txt file. Post it as an attachment in your next post and I'll see if there is anything screwy in it.