While seeking help and advice in several hardware forums, I noticed that there are many problems with people who were using some RS232 device in Win98 (or whatever) which stopped responding under XP. IMHO some of XP's services (god knows which) blocks the communication to the com ports. I am quite cinfident it is a Microsoft problem...
In my PC I have both COM ports ENABLED in BIOS, both seemed to appear as "this device is functioning normally" in DEVICE MANAGER, but SDM could not detect my DIY interface. I don't know how it is possible to verify whether some other application or service is making a conflict, other than believing when DEVICE MANAGER says that "there are no conflicts". Since I don't believe it, I also tried to shut down any task running in the background (except the ones critical for OS operation

) but nothing helped. I then tried to enable (and later disable) the hoardes of services- didn't help neither.
The most puzzling for me is that the COM ports DO work- I tried to connect to it a DIY GPS interface and it works great from the very beginning!
At this stage I was very frustated and pissed off, but there was hope in the horizon- why the heck use a com port when there is a huge USB hub shining in front of my eyes???
This is the only solution that I have found to work-arround this problem:
I got a cable that converts RS232 into USB. When the cable is attached to the USB hub it is detected as "COM PORT5". Happily, I tried to run SDM and when I pushed the "test" button- nothing happened... :wacko:
Now I was angry, wanted to smash the interface... Last thing I tried was to DISABLE both com ports in BIOS and then try to use the USB cable --> Hurray! SDM immediately succeeded in detecting my interface with the cable!!

Since then, the RS232-USB cable works excellent with the interface, and it is actually better since I hated going to the back of the PC in order to plug the serial cable- much better in a USB hub!!
Now, I just though to myself, maybe there was a problem with the interface like a loose contact or something and perhaps now it works also with the regular com ports- nope! It refuses to use the original com ports, only the RS232-USB cable... I don't know why but if it works it works...
If you can borrow such a cable from a friend try it. Try to disable the com ports (in BIOS) if it doesn't work. A new cable costs about 15-20 US$