I noticed that when I connected any usb memory keys or usb hard drives windows failed to install the drivers. Usb devices I used previously continue to work correctly. Repeated attempts to install drivers failed to resolve the problem.
After a lot of searching I came across somebody mentioning the usbstor.inf and usbstor.pnf files. These should be located in the Windows\Inf folder. A quick search revealed the these files were missing on my system.
I replaced the files and performed an update driver in Device Manager and my system detected the new USB hard drive, no reboot was required.