I'm having the same problem in my iMac.
I have 2 external HD. One 250Gb and the other 1Tb. Both from Buffalo connected through USB 2.0.
The first one is formatted in MacOS extended journaled format; and I use it as a back up with Time Machine, and has a small FAT32 partition, so I can use it with Windows in Bootcamp.
The other one is used as storage.
Both were working just fine, but since I updated the system to OSX 10.5.7 (from 10.5.6) using the file downloaded from Apple website, the first HD simple disappeared.
It doesn't show up on Finder or Disk Utilities. It is like it wasn't connected at all. I tried changing port/disconnecting/turning off/rebooting both computer and HD, nothing helped. I did a ZAP on the PRAM, and repaired permissions, but still nothing happens.
The 1Tb HD is working just fine, but I can't use the backup one.
If I boot my computer on the Windows/bootcamp partition, the Windows can recognise the FAT23 partition on the external HD, so it's clear that the HD is working just fine, but since the 10.5.7 update the Mac OSX can't use it.
Any suggestions?