This is possily indicative of an infection. We had a few of these in the shop this week, and we were tearing our hair out trying to figure it out. It's not the BART CD but something which is happening to the filesystem [and/or] registry.
We finally performed 'repair' installs of XP, reloaded IE8 in safe mode, then activated XP again. We then were able to proceed with infection cleanup.
My guess was that the infection broke permissions on the registry or modified the MFT in such a way as to mask the existence of malicious files.