Summary: USB comes in two versions that run at two different speeds. A faster device plugged into a slower interface works, but works more slowly than it could.
I think I saw this once but maybe I was dreaming. I got a system message about my USB connection to the effect that I would get faster results if I moved to the faster USB port. On my machine there are two near the top and two more nearer to the bottom. Are they all equal or are some faster than others because of their location?
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You weren't dreaming. 
Windows does occasionally notify you that "The USB device can perform faster if you connect it to a High Speed USB 2.0 port."
When, why, and what to do about it vary depending on your system and the USB device you have in hand.
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USB (Universal Serial Buss) currently has two versions: the older 1.1, 12 megabit per second standard (mbs), and the newer 2.0 capable of 480mbs, or 40 times faster than 1.1. Both USB devices, and the interfaces you might plug them into, are either version 1.1 or 2.0.
One interesting aspect of USB is that it's totally valid to mix and match 1.1 and 2.0. The very common scenario is that a computer will have a USB 2.0 interface, capable of the higher speeds of 2.0, but will still support and work properly with 1.1 devices plugged in.
The reverse is also true, and I think that's the scenario you're seeing. It works like this:
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Your computer has a USB 1.1 interface. That means it's limited to the slower 12mbs speed.
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You purchase a newer USB 2.0 device and plug it in. It works, which is nice, but even though the device is capable of 480mbs your computer's USB interface will limit it to the slower 12mbs.
And that's exactly what Windows is telling you: you have a 2.0 device plugged into a 1.1 interface. As a result it'll perform slower than it could. If you were able to plug it into a 2.0 interface then the device would be able to operate at full speed.
The difference between 1.1 and 2.0 is a difference in hardware, so it's not something you can just install new software for. In addition, most machines are manufactured with all 1.1 or all 2.0 interfaces. Typically older machines have 1.1, and newer machines have 2.0. So it's also not just a matter of plugging into a different port on your machine, chances are they're all the same.
If you have a machine with USB 1.1 interfaces the only real alternative, short of upgrading to a newer machine, is to purchase a USB 2.0 add-in card. The USB ports provided by that card will be the higher speed 2.0, while your older USB interfaces on your machine will remain 1.1.
Related:
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Ask Leo! - How can I tell if I have USB 2.0?
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Ask Leo! - How do I upgrade to USB 2.0?
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USB Cards in the Ask Leo! store.
Article C3268 - January 14, 2008
I've recently purchased a new printer, a lexmark, since that time I've be getting the statement that I should purchase a 2.0 usb high speed whatever. I did that. I'm still getting the message. Did I put the plug in the wrong ports? I'm not very "techy"....just want to do the correct thing and have my printer stop making noises even when it is not turned on. Could you explain for me???? Thank you in advance.
Posted by: diane sofiakis at March 6, 2008 12:03 PMI have a HP Pavillion running Vista. It has 4 USB 2.0 ports. I have a 4 port USB 2.0 hub. I have 2 printers an externalHDD and a Sandisk flash drive plugged into the hub. I still get this message and I've swapped all the devices into the avaoilable computer ports directly. What's the problem?
Posted by: Steve Hughes at March 19, 2008 9:00 AMI have USB 2.0 ports, and I am sure of it by looking at their description under Control Panel. But the transfer rate is not at the speed it's suppose to be. Can the cable used to connect the USB port and the device be a factor? Is there such a thing as 1.1 vs 2.0 cable?
Posted by: namsilat at April 28, 2008 12:00 PM-----BEGIN PGP SIGNED MESSAGE-----
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No, there's not really such a things as a USB cable, though
of course cable quality in general can always play a role.
Typically when speeds aren't what I expect it's because the
device itself is at issue, or occasionally the USB
interface.
Leo
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Posted by: Leo at April 28, 2008 8:51 PM6zjmMey3uvoYjmZ5TLuU4kc=
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I have high-speed USB ports and still get the message, and when i go to my device manager and click on the properties for USB, there IS no advanced tab, only general. I've looked ALL OVER THE INTERNET for a solution to stop this popup but whenever someone mentions the same problem as me, NO ONE REPLIES, do you have a solution?? Thanks!
Posted by: Tony at September 10, 2008 9:33 PMI have a Compaq C304NR with 2 USB 2.0 ports. Everything checks out in device manager, proper WinXPx32 chipset drivers are installed etc. I've tried several Hi speed usb 2 devices (HDD's) with different cables which the longest was 12 feet. The effective rate of data transfer gives the ~40MBps expected so the USB portion seems to be functioning properly. But every now and then the message will pop up. Just happened again today and the last time was about 8 months ago give or take. I've gone through maybe a little over a dozen or so fresh formats and reinstalls with first SP2 and now SP3. Linux of course never reports or encounters any errors and everything always works perfectly in every OS.
Therefore I'm lead to believe this is a M$ bug...
Posted by: Talldog9 at September 19, 2008 1:33 PMI certenly have usb 2.0 port on my notebook (I have checked it with the servise department of the store I bought it) but when I connect a canon pixma mp630 the message "This device can perform faster if you connect it to a hi speed usb 2.0 port" still appears. Why is that? I also have downloaded all update drivers. What can I do?
Posted by: Anthony at December 23, 2008 12:01 PMI also have a laptop with USB 2.0 but I still get the message. I am annoyed because I am getting slow speeds from my GSM modem and I suspect this could part of it.
Posted by: giuseppe at March 13, 2009 9:07 AMIf you indeed have USB 2.0 hardware AND you are running Windows XP with SP3 installed, then try to install Microsoft hotfix KB945436. This should help you for sure.
Posted by: demask at March 30, 2009 10:47 AMWhy doen't the device show up as a drive? I don't care that it is working slower.. I just want it to appear in my file explorer as a drive.
Posted by: Gordan at July 14, 2009 9:31 AM