Thanks anyways... I got it solved. Here's how:

I uninstalled the software for another USB gadget - a Muvo player I had.
I uninstalled the software for an old USB external CD Writer - the software was the Sony Hotburn
It still crashed, but the messaged referred to the APIX VxD. I found a file APIX.DLL in: Windows/System32/iosubsys

Turns out this file was an old version and relates to Windows' ASPI. It was an old dll that makes the version of Nero Burning Rom that works with the internal CD writer work. When I changed this back to the original APIX.DLL that came from Win98SE, the Mini Cruizer gets detected and works like a charm. I do have to change it back to the old one for the Nero to detect the CD Writer though, which is a hassle but works anyway.

See ya next time