I also have this issue.  Just installed Ubuntu 8.10 Interpid Ibex fresh
as a standalone OS on the same exact machine which Windows XP, Vista and
7 were all running on.  On the afore mentioned operating systems USB
transfer speed was normal 2.0 speed, taking maybe a handful of minutes
to transfer a 6 to 7 Gb file from local HDD to USB 2.0 HDD or the other
way around.  With absolutely no other changes other than changing to the
latest stable 8.10 Ubuntu release speeds are now gimped to USB 1.0 speed
at < or = 1 megabyte per second.  The same exact 7Gb file now takes
approximately 2 hours roughly to transfer.  Same hardware, same cable,
same USB port, only change was Windows to Ubuntu 8.10.  Please fix asap.
I use USB transfers for large files on a daily basis and this is
seriously ruining what has otherwise been a very positive experience
(finally) with Linux after a few years of trying several distros over
and over.  Thanks.

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file transfers on USB disk are very slow
https://bugs.launchpad.net/bugs/197762
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