Hi Feline,
No, it's not the boot sequence (1st - CD ROM, 2nd - HDD, 3rd - Disabled, 4th - Disabled) but you may be on to something in terms of the Desire appearing as an HDD even though it ought not; With the BIOS editing window open, I plugged the Desire in to the usual USB port and then tried to refresh the list of HDDs to see if it appeared. I couldn't, because the PC keyboard stopped responding. The Desire keyboard was locked when I plugged it in, but unlocking it confirmed "charge only". I then unplugged the Desire, and the PC keyboard immediately became active again, even performing the buffered commands.
XV