BTW - Microsoft solved the external Firewire problem for me. They now work perfectly after SP2. What they showed my how to do was to remove HIDDEN drivers that clog up the system and sometimes keep the good drivers from loading. Here is the message I got from Tech Support - I followed it and it worked:
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My name is Benny. In order to resolve the issue more efficiently, this case has been escalated to our Windows Platform team. I have taken ownership of your Service Request. From now on, I will work closely with you to resolve this issue. I appreciate the time and effort you have taken on this service request. For your reference, the Case ID of this service request is: SRZ040917002673.
After reviewing the entire service case log, I suggest we try the following steps to troubleshoot the issue:
Step I: Uninstall Hidden Drivers
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Set Device Manager up to show Non-Present devices and delete the hidden device.
1. Please click "Start" menu => click "Run" => type "cmd"<without quotation marks> and click "OK"
2. Please type "set DEVMGR_SHOW_NONPRESENT_DEVICES=1" <without quotation marks> in the command prompt.
3. Please type "start devmgmt.msc" to launch "Device Manager".
4. Please click "View" menu in "Device Manager" and choose "Show hidden device".
5. Please expand all items in the panel, if any hidden device listed below, please delete them. (The hidden device is shown in a transparent color.)
6. Please right-click the hidden devices and click "Uninstall". (Note: Please remove all hidden HDD drivers, 1394 relate drivers and Storage Device drivers.)
Step II: Reinstall 1394 Controller
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First, please disconnect all 1394 devices. Then, go through the following steps:
1. Click Start, go to Run, type in "devmgmt.msc" without the quotation marks and press Enter.
2. In Device Manager, double click to expand "1394 Controller", right click on the Host Controller, click Uninstall and click OK.
3. Repeat the step 2 to uninstall all items under 1394 Bus controllers. Then, restart your computer and Windows XP will reinstall all 1394 controllers automatically.
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It worked!