Not necessarily however if the Host doesn't enumerate the device properly then it can't be passed to the Guest. I have USB devices where there are no drivers available for the Host OS, do not function under the Host OS, however because they are enumerated properly I can connect them to the Guest OS that drivers are available for and use them. As long as the Host sees is as an Other device and not a USB device I'd say you're out of luck in this use case scenario. You may end up having to physically dual-boot the Host with both Windows 7 and Windows XP.
BTW My Host OS is OS X and it's very good at properly enumerating devices even when drivers are not available for those devices, do not function under the Host however allows them to be passed to the Guest because the Host sees them as a USB device.