Error 39 while running Daemon Tools

"Unable to add adapter: Device Problem 39" is the error Im getting.

Here is a link to someone who is getting the exact same error I am:

Ive look at my drivers and all of them are up to date. Im not getting any errors in Event Viewer. Ive taken a look at SCSI stuff in registry, doesnt look to be any problems. Basically Im all out of answers to what the problem may be.

Any ideas short of installing Win XP again?
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