I have encountered a strange problem with my windows 7 today.
When I inserted my Kingston USB data traveler, it was recognised but not displayed on windows explorer. I checked the USB on another PC with windows 8 and it worked fine.
I tried to reboot my PC and it has no effect. The reboot even hang with USB plugged into it.
The solution that I found worked on my PC was removing the Kingston driver, then insert the USB drive. Windows should automatically reinstall the driver for this particular USB drive.
To remove the driver, go to your device manager and select disk drives section as below. Remove your USB driver, in my case it was Kingston Data Traveler.