Mass Storage Device Defect

Question

I had a 2GB flash memory "pqi" brand. I was at my friend's and i transfered some data...and everything went OK. After a while I noticed that the orange light in the flash was off! I'm sure it wasn't after I finished transfering! I replugged it tp find an error message telling that Windows didn't recognize the flash memory.

I came home and plugged it into my PC (XP SP2)...what happened is that the flash logo appeared next to the clock and the disk icon appeared in 'my computer' but a message appears when i double click the disk icon telling me to insert a disk into the disk which is supposed to be the flash!
To save your time, i've tried deleting USB hubs and controllers and disabling USB 2.0 but in vain.

Thanx in advance!