"Removable Disk" shows up in Windows 7 even when USB Flash drive isn't there

This thread is sooooooo old, however I still have the problem the OP has. The suggestion of removing it from Device Manager does NOT work for me. I do it, and as soon as I reboot Windows will search for the driver and install and the icon and the phantom drive is back listed in Devices & Printers.

I have tried everything, its really annoying. I believe it is also adding the error below in the Event Viewer. If there is anybody out there with a real solution please help.

Note: I am using Windows 7 (64)

Event 219 Kernel-PnP

The driver \Driver\WUDFRd failed to load for the device WpdBusEnumRoot\UMB\2&37c186b&0&STORAGE#VOLUME#_??_USBSTOR#DISK&VEN_GENERIC-&PROD_MULTI-CARD&REV_1.00#20071114173400000&0#.