Go into the System configuration applet (control panel->system, switch to classic view if needed), and open the device manager
You'll see the non-working floppy drive (disregard the usb data bar thingy). Right-click it and choose "Update Driver Software".
Choose that you want to browse your computer for drivers.
Choose that you want to pick from the list of existing drivers.
Select the option to list all known devices.
Now select the "NEC Systems" "NEC USB Floppy".
Disregard the warning.
The device should now be installed and working: Windows will detect the NEC device and a X1DE-USB as well. A floppy drive will appear in Windows explorer.