Yes, my kernel (3.4.3) also panics when I insert my mp3e2 using the kernel driver. The problem is stack corruption, probably due to a changed data structure. My "hdjd" program is a demonstration of how to speak to the controller from userspace, so we wouldn't need to keep patching the driver. It proved that it is simple to make the Hercules devices look like HID.
I am currently integrating USB bulk device support into Mixxx trunk. Until I'm finished with this, you are probably going to have to run an older (2.6) kernel with the hercules driver. I have heard some people are able to run a 3.2 or 3.3 kernel with the driver. Perhaps someone else will be able to advise you about the kernel module in later kernels.
