USB Driving me batty. (Yes I read the other threads... No help)

Ok so here the deal, I have tried 4 different versions of USBD.IRX
I have tried all for of these files in:
mc0:
mc0:SYS_CONF
mc0:SYS_CONF/MYPS2/
root of /myPS2/ (on HDD)
boot folder of /myPS2/ (on HDD)

I have the program installed on my HDD in the +boot partition and have config.dat correctly configured (yes, I'm sure). I use LuanchElf 4.04 to load the program and am using the 1.2 Dev.Ed version (June 06 Build) of myPS2

My results are this,

Attempt 1: Failure
Freshly starting the program with a USB flash drive inserted, the program see's mass: and then locks up when accessing mass:

Attempt 2: Failure
Starting the system without the USB drive inserted, then inserting the USB drive after the program has started results in mass: not being on the menu.

Attempt 3: Partial Success
After performing Attempt 2 and then changing skins, the mass: device is now listed and fully accessible... Odd...
(side note mass: is accessible through picture viewer without changing skins)

So I am guessing that there is some sort of USB conflict possibly with LaunchElf. Or this program has a real issue with USB.

Please don't bother replying with questions or comments. Answers would be nice tho. I think I'm pretty much done with this program and I'm gonna stick with LaunchElf... It would be nice tho if someone could develop a functional PS2 operating system that was GUI, self contained (as in unzip dump to media of any sort and run it on the ps2) and actually worked.