Error message when you insert a smart card in a reader on a Windows 7-based or Windows Server 2008 R2-based computer: "Device driver software was not successfully installed"

When you insert a smart card into a smart card reader, Windows tries to download and install the smart card minidrivers for the card through Plug and Play services. If the driver for the smart card is not available at any of the preconfigured locations, such as Windows Update, WSUS, or intranet paths, and a custom Crypto service provider is not already installed on the system, you receive the following error message in the notification area:

Device driver software was not successfully installed 

Click here for details.

If your deployment uses Plug and Play smart card solutions, then follow the below steps to enable Smart Card Plug and Play. By default it is disabled in Windows Server 2008 R2.

To Enable Smart Card Plug and Play in local Group Policy, follow these steps:

1. Click Start, type gpedit.msc in the Search programs and files box, and then press ENTER.
2. In the console tree under Computer Configuration, click Administrative Templates.
3. In the details pane, double-click Windows Components, and then double-click Smart Card.
4. Right-click Turn on Smart Card Plug and Play service, and then click Edit.
5. Click Enabled, and then click OK.

For more information go through the link http://support.microsoft.com/kb/976832