USB 'detection' is done by looking for a specific registered component in the Registry. If the program can't find it then it assumes that it must be running as a portable install.
There are two possible solutions:
1. Try re-registering the shellext.dll file
From an Administrative command prompt type:
2. Reinstall the application (recommended)
Since this problem is probably due to an error during install it might be best to simply re-install the application. Following all requests to reboot, first uninstall the application and then re-install it.
If you still have problems please post a comment.