I plug in the UBS drive, and ti is detected but it comes up as "Unknown device", I want to point Windows to the drivers, but Iomega claims there are no drivers for XP and XP will just automatically detect it.

Any help in getting this to work would be appreciated.

Iomega is correct, no drivers are required. The os provides native support that allows this drive to read a data or music disk and to burn a cd-r disk. 2 things are required:

1: A working usb drive
and
2: A working USB port (no hubs)

So the first thing I'd check is the usb ports in Device Manager and if the usb ports are in working order, try the drive on another machine.