Every thing is working now. My problem was I got cofused by Windows XP "Found New Hardware" dialog. When the dialog asked me to insert the driver disk that came with my hardware I got confused. The only disk I had was the DAQmx installation disk, As I had previously installed the DAQmx driver I figured it was a waste time to reinstall the DAQmx driver and aborted the found new hardware dialog. After finding a helpful article in the NI knowledge base I tried again. Tthis time I ignored the insert driver disk request, clicked next and after two tries it worked . The installation did not work with the first USB port I tried.
And yes the heading NI-DAQmx Devices only appears in MAX when a DAQmx compatible device is found. So when the heading NI-DAQme Devices does not appear in MAX it may mean DAQmx is not installed but it generally means DAQmx compatible hardware was not found.
Howard.