The issue is related to the USB software in Mac OS 8.6 and has been resolved in Mac OS 9.
As a workaround, you may disconnect the peripheral that is not in immediate need. Since a USB device can be plugged in while the computer is running, disconnect one of the peripherals during system startup and reconnect it after the computer has successfully started.
Although this specific issue is not related to the driver version for the USB device, always make sure you are using the most current drivers.