Random XP Home reboots on start up

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Upon recently booting my machine up, windows loaded, and during startup (once within windows), the pc froze and then rebooted.
I entered safe mode and removed everything from the start up list, and the machine now boots up succesfully. The problems now is that when I launch almost any program (internet exporer, itunes, windows media player,...) the freeze and reboot happens. Disabling the auto restart function has no impact (no BSoD, just same freeze and reboot) and no pertinent error messages are being registered in the event viewer.

One point, when I start in safe mode, two files are flagged when booting, both are files related to Daemon tools. The problem is that Daemon tools is not implicated in any of the programs which cause the reboot. machine is running at a decent temp and has had the same hardware set up for about 3 years with no issues.

Thoughts?

Thanks.
 
We have seen a lot of issues with Daemon Tools drivers.

Have you tried a Windows Repair?
 
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