Unable to create virtual drive

[NerdCake]

I'm sure there's more than likely a thread for this, but I've googled all night and nothing helped me. I'm at a loss here.

I'm running windows 7 32bit,whenever I try to add a virtual drive it starts off normal,but then says "unable to add virtual drive"
WindowsFixIt or whatever it was called,did not fix it.

any suggestions would be lovely,I used to run Daemon Tools lite on windows XP smoothly before I reformatted. I don't want to use a different program as Daemon Tools is what I know and love. help!

[Terramex]

This applies to both, DT and SCSI drives ?

Which security software(s) are you using ?

Also please download this tool: http://www.bustrace.com/downloads/devfilter.exe
Run it, highlight your optical drive on the left, then highlight upper/lower filters on the right.
Which filters are installed ?