USB storage device slow with reset and I/O error

Binary package hint: linux-source-2.6.38

USB storage devices will start at a 20MB/s transfer and after a few seconds (250MB ~ 300MB), it will slow down to under 1MB/s.

Steps to reproduce:
Insert any USB Hard Drive or Stick to a computer running Ubuntu Natty Narwhal and start to copy a file, bigger than 500MB, from computer to USB storage device. After a few seconds at USB 2.0 speed, it will slow down to USB 1.0/1.1 speed.

Dmesg output will report several ehci_hcd resets, followed by several I/O errors. After a couple of minutes, a loop with ehci_hcd resets and I/O error messages returns to dmesg output and the remaining data will be writen at less then 500KB/s, eventually aborting the process with a fatal error.

Tested it a dozen times, with 2 500GB Hard Drives on 5 different USB cables and with 2 8GB USB Sticks.
All cables are working flawlessly and all storage devices were formatted with no error or bad blocks.

lsb_release -rd output:

Description: Ubuntu Natty (development branch)
Release: 11.04

uname -r output:

2.6.38-7-generic

lspci output:

00:00.0 Host bridge: Intel Corporation 82G33/G31/P35/P31 Express DRAM Controller (rev 02)
00:01.0 PCI bridge: Intel Corporation 82G33/G31/P35/P31 Express PCI Express Root Port (rev 02)
00:1b.0 Audio device: Intel Corporation N10/ICH 7 Family High Definition Audio Controller (rev 01)
00:1c.0 PCI bridge: Intel Corporation N10/ICH 7 Family PCI Express Port 1 (rev 01)
00:1c.1 PCI bridge: Intel Corporation N10/ICH 7 Family PCI Express Port 2 (rev 01)
00:1d.0 USB Controller: Intel Corporation N10/ICH 7 Family USB UHCI Controller #1 (rev 01)
00:1d.1 USB Controller: Intel Corporation N10/ICH 7 Family USB UHCI Controller #2 (rev 01)
00:1d.2 USB Controller: Intel Corporation N10/ICH 7 Family USB UHCI Controller #3 (rev 01)
00:1d.3 USB Controller: Intel Corporation N10/ICH 7 Family USB UHCI Controller #4 (rev 01)
00:1d.7 USB Controller: Intel Corporation N10/ICH 7 Family USB2 EHCI Controller (rev 01)
00:1e.0 PCI bridge: Intel Corporation 82801 PCI Bridge (rev e1)
00:1f.0 ISA bridge: Intel Corporation 82801GB/GR (ICH7 Family) LPC Interface Bridge (rev 01)
00:1f.1 IDE interface: Intel Corporation 82801G (ICH7 Family) IDE Controller (rev 01)
00:1f.2 IDE interface: Intel Corporation N10/ICH7 Family SATA IDE Controller (rev 01)
00:1f.3 SMBus: Intel Corporation N10/ICH 7 Family SMBus Controller (rev 01)
02:00.0 Ethernet controller: Atheros Communications L1 Gigabit Ethernet (rev b0)
04:00.0 VGA compatible controller: nVidia Corporation G96 [GeForce 9500 GT] (rev a1)

lsusb output:
Bus 005 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 004 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 003 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 002 Device 002: ID 05e3:1205 Genesys Logic, Inc. Afilias Optical Mouse H3003
Bus 002 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 001 Device 005: ID 152d:2329 JMicron Technology Corp. / JMicron USA Technology Corp. transcend storejet 25P
Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub