Help. USB device causing BSOD.

Hi guys.

Here's my situation.
This morning I plugged in my MicroSD card reader into one of my USB ports. It showed that there was no disk in the reader and the message to "retry, abort, cancel" came up. Before I hit any of those options, I put in my MicroSD card, and instantly, my computer crashed with a BSOD. All I remember is that it showed a IRQL NOT LESS OR EQUAL error message.

Now when I try to logon, it starts to load XP, but before it gets to the desktop, it crashes with a 0x0000008E error message. No specific driver is mentioned. (There's nothing connected to the USB ports or any other port now.)

I can boot into safe mode OK. I've tried booting with minimal settings using 'MSCONFIG', I've tried loading Last Known Good Configuration, and I've even tried uninstalling all programs I've installed since my last reboot. I can even use my card reader and MicroSD card in safe mode OK.

What should I do?
(Vista partition also loads fine. Just XP is acting up.)

PC Specs:

Dell Inspiron Laptop 7200
Dual-booting Windows Vista and Windows XP
Vista on primary partition C: XP on E:
3 USB 2.0 ports
1 GB Ram
120 GB Hard Disk

(Did RAM tests. OK results.)