SpeechMike and SpeechExec Pro software
Ok, after installing new WinXP drivers from the Philips site, everything worked perfectly.
Now I have installed the latest version of Parallels 4.0.3810 and a new problem has occurred.
Since the upgrade, SpeechExec Pro will not load. This program needs the USB dongle to start; if it's not inserted a message appears saying "cannot find a valid license". Disconnecting the dongle using parallels (or unplugging it) leads to the program failing to start, as expected.
However, when the dongle is inserted, the SpeechExec Pro simply hangs. If you disconnect the dongle in the middle of the hang, you get the "no valid license message". If you don't disconnect the dongle, no matter how long you wait, the program doesn't start.
I don't think this is a SpeechExec problem. It definitely seems related to the new Parallels version.