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Unable to change USB drive letter

Using Windows 7 pro on an ASUS I7 laptop I am unable to change the drive letter for any external USB drives. From inside the Windows Virtual disk Manager I receive the following error "Parameter Incorrect"
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In answer to the first solution by "noxco". Yes, I am using an Admin account. As a test I created an other Admin account to have the same problem.

In answer to the second solution by "arnold", Your solution allowed me to change the drive letter from within the Registry, however, I am still unable to change or delete a drive letter using Windows "Virtual disk Manager" (I still receive the same error "Parameter Incorrect"). For now I will consider it as a "Work-Around" and will make use of it... I Would like to keep this open until we find the correct fix for the error coming from the "Virtual Disk Manger".
Why A C?  It is hard to determine what your specific issue is based on the information you provide.  Do you have UAC enabled?
If you disable UAC, do you get the parameter Error?
Not sure I understand your "virtual Disk manager?"

When you try to remove the existing assigned drive letter, do you get a warning and then the drive letter is removed.  You then go back in and assign a new one?
Not sure whether you are trying to change remove/add in the same process and Windows does not like that.
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ASKER

UAC is Disabled.  
The Error occurs when I attempt to change a USB device drive letter when I
am in {Disk Management}.
 {Administrative Tools\Computer Management\Disk Management}.

When I right click on a USB device and chose to change it from one letter to another OR if I try to remove the drive letter an error pops up that says: " Virtual Disk Manager Parameter Incorrect" and no changes are made. Know that when I choose to change the drive letter of  the DVD/rw drive it works just fine.
Try to roll back the usb drivers by deleting usb via device manager and restarting the machine.
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ASKER

Yes I will try deleting the device in the Device Manager. Please know that the computer in question is a client's computer and it is currently back at his office/desk. I do have 24/7 remote access to his computer via Teamviewer but it may be a day or two before I get back to you with the results.