Well, just tried it and did not seem to be a problem. The flash drive can be read in both XP and Windows 7
Was the version of XP an SP3 install?
Edit: Did you put any files on the drive from the XP computer? And the partition should not show as Active as mine does..I have changed it already.
Since I really can't suggest anything, perhaps you could open an Administrative Command prompt and type the following with enter after each:
Diskpart
List disk
sel disk 2 <-- This disk number should be whatever your flash drive is
detail disk
list Partition
sel par 1
detail par
You can check the info from the detail commands against what I show for my flash and see if you notice anything different.
When you are...