I figured it out,
i turned resident shield off and tried, but the transfer rate is still the same...
The usb is connected directly to my laptop.
I was thinking, earlier i tried another usb which i believe is 1.1 (well i think it is because i checked its properties and it didnt say anything about it being a 2.0 device) and the transfer rate was like 10mbps+
Is it possible that my ports are some how running at 1.1 speed or compatability only?