The Packard Bell Store and Save seems to be a troublesome device. If you look at these two reviews from Amazon it would appear that they have had reliability problems. And it does seems that they do not work with Win 7 see this earlier thread on this forum.
You say that you are using this with Windows XP, are you trying to transfer the data to a machine running Win 7 or XP? I ask because your title is Win 7 and you are in the Win7 Forum.