niczar - you may be experiencing this problem because that drive is not supported under XP but only for W98, NT, and W2k. It may have installed a device driver that is incompatible with XP.
gchq - this is what Microsoft says about your error:
CAUSE
These error messages may occur if you move the "Documents and Settings" folder to a location that is not immediately accessible when the computer starts. For example, the error messages may occur if you move the "Documents and Settings" folder to a volume mount point for a large volume set. When this issue occurs, services that are configured to run under a specific user account may not start.
RESOLUTION
To resolve this issue, move the service account's profile back to the system disk.
you can read the full article here:
http://support.microsoft.com/default.aspx?scid=kb;en-us;315194[Edited by Sampson on 2004-07-09 09:13:57]