Firsly, make sure you have the correct driver installed. See point 10
here. Quote:
"Windows installs the incorrect driver for Skybound II (ex. Intel/M-Systems FlashCard) **The below process and associated screens are generic and you may not see the exact same items in the Device Manager.**
These step apply to Windows 95B, 98, 98SE, and ME. Windows....
XP users will see similar screens but will need to choose "Centennial" as the driver manufacturer and "Linear Flash Memory (FlashTools)" as the driver instead of "FlashTools MTD (Series 2)" as described below.
Checking the Actiontec site, they don't support XP.
Psism, however, seem to be able to supply a driver if you speak to them nicely. Or they may be able to sell you an alternative internal PCI or IDE card reader which supports the Linear Flash card used in the Skybound.