Have you guys encountered slow transfer speeds from an external drive to a Windows 7 machine? I used to be able to transfer files at 50% of the USB2 rated speeds on the same machine but now it crawls at 500KB. Google hasn't turned up much info on this.
It sounds as if your PC is misidentifying the USB 2.0 device, or setting it to use High Speed, instead of Full Speed. You might want to check your BIOS and Windows 7 device settings to make sure your USB ports are set to use Hi-Speed (or High Speed), not Full Speed. Lots of people make the mistake of thinking that Full Speed is faster than Hi-Speed. The reverse is true. Hi-Speed, or High-Speed gets you the full USB 2.0 transfer rate of 480 Mbps while Full Speed gets you the USB 1.1 transfer rate of 12 Mbps.