We have found that the problem was caused by MicroSoft update KB840987 as when we removed it the problem went away, Now the way I figure it for the rest of you that reinstalled XP is the problem went away until you re-installed this update and the problem cam back. try deleting it. (it will come back until you block it) There is one problem with removing it as it causes a minor problem with DeltaView if you use it.
After not finding the answer under the error message I searched on KB840987 and found other problems caused but this update. There was another update KB887811 would fix some different problems caused by this update.
SEE:
http://support.microsoft.com/kb/887811
So even though it did not mention my problem I ran the fix update anyway and guess what! no error message after 2 boots and it was happening everytime for me.
So check and see if KB840987 is on your system, if it is you probably do not have KB887811 on you system. try it, you'll like it...
Let me know if this works for you..