I sort of found clues to why daemon tools isnt functional..
For weeks, when I turn on or restart my computer I am sent to this error page witch safe mode options and I never understood why. Till now since Im brought to this screen once more I realize when entering the safe mode option , there was a conflict saying that d347bus.sys cannot be loaded....before hand I didnt know what this driver was but since now, I've read the thread on how to get rid of this drive (which I did remove) I realized that this was a daemon tools drive....when continueing to safe mode I quikly restarted my computer and there wasnt a problem and normal windows was loaded. When loading, a message sprung about having a bold heading "Daemon Tools"-in the message it said
"Virtual SCSI driver not detected". I quikly unistalled daemon tools off of add/remove programs. I must imagine that these daemon drives still exist and this message could be the problem..
Does anyone have a remote idea to what is going on?!?!
Edit

aemon tools worked fine during SP1 but when uninstalling for SP2 then reinstalling it during SP2, it doesnt work.