"The MSDN article [Preventing Plug and Play" explains that when a PnP device is plugged into a Windows XP Embedded system, if the driver exists on the computer, the device is installed immediately. If the driver does not exist on the system, or if the driver package is not digitally signed, the Found New Hardware Wizard appears to prompt the user for the driver and to assist in the installation. The article also explains that a registry value can be set to prevent the wizard appearing but whether it will work in your situation is left to be explained.