It says driver is up to date. I disabled every non-critical service(audio, network, etc...) and it did not effect the speed.
The problem seems to be with a bug in the driver. Whatever FI_UNKNOWN is, is causing the slowdown.
The issue seems to be the driver trying a command that does not work on the drive. For large files the drive goes full speed(Several GB) but for a ton of small files the speed is reduced significantly(because of those bad commands interspersed between each
file copy).
Also, burning files goes full speed. Hence this must be an issue with windows 8.