I've always been a little annoyed by the bazillion floppy drive thing. It's definitely a bug. The MK3 INF files (don't have the MK4 yet) were over-complicated, using a custom device setup class and attempting to do most of the work manually instead of letting Windows handle everything. This is necessary when you want to do something non-standard, but for setup purposes, the Catweasel should look like a standard multifunction PCI device.
It looks like maybe the driver writer was attemping to make the devices available to user mode code, but I don't think the INF files accomplished that. I haven't dug into the driver itself to see what it's doing. You might want to look into Arjuna as well, but I don't know if it's evolved much over the last year.
Anyhow, I gave up on the Windows drivers and only use the Catweasel MK3 under WinUAE with multidisk.device 3.62. Version 3.63 ignores the timing settings set by multidisk prefs, breaking support for the Catweasel under the JIT emulation. Toni and Jens are aware of the problem, but it was never fixed.
So, after I get my MK4, maybe I'll put some time into cleaning up the INF file, if it still does werid stuff. :-) My Catweasel Installer project on the Amiga side stopped about this time last year. (I lost my grandfather on November 6, 2003 and my closest uncle the following February. I was still in denial over losing my grandfather, but losing my uncle shortly thereafter was a little too much. I just wasn't in the right frame of mind for recreational programming.) If Jens and company haven't improved the installer with the Catweasel MK4, I'll probably start up the Installer project again.
Trev