I also had this problem. I bought two of these and had the same exact problem with both. I tried with them soldered to the xbox (with power inserted but xbox off), soldered without power plugged in, and without the xbox. I tried on a Windows 7, a clean install of Windows Server 2003, and a clean install of XP and like OP, I only got the red light but no devices were detected in Device Manager.
It's definitely the chips. If this were a driver issue, we would have "unknown device" in device manager.