Can I use lpc2148 to host USB to connect two mass storage devices to facilitate transfer of data between them?
Yup. After posting the thread, while still searching about the same I realized that it can't be done with LPC2148.
And about connecting multiple devices, I haven't yet thought about that.
Firstly I need to find a processor with USB host controller. And while reading the datasheet again thoroughly I found that LPC2148 can connect to a USB host but can't host USB services.
So, I would like to ask you about any processor with would host USB and be suitable for a beginner in usb interfacing.
You might consider looking at newer LPC23xx, LPC24xx or maybe the even newer Cortex-M3 series LPC17xx.
Some of the chips in these familes have USB Host and/or USB OTG that can connect to a USB Device.
The OTG (On-The-Go) port can be either host or device.