I checked my non-Plug and Play drivers section in Device Manager (you must choose View->Show Hidden Devices to see them) and found something named TPkd. I uninstalled it and now I have NO problems with Win2K at all. My shutdowns and restarts work right and all of my hardware works correctly.
Hopefully this will help someone else.
Additional info: The problem I was having started as a shutdown/restart problem where my system went through the saving settings and windows is shutting down messages and would just get a clean blue desktop and lock. I could hear the hard drive and fan cut off but the system never would shutdown or restart. Then I started having modem problems and video and sound problems. When I installed the SoundBlaster Live drivers I noticed that my floppy was gone. Upon investigating, I noticed that the floppy was conflicting with TPkd under the non-plug and play drivers section of device manager. I have uninstalled the TPkd with no discernable negative effects. As far as I can tell TPkd was provided by Pace Anti-Piracy but I can't tell which program installed it. Everything I run seems to work correctly after it was uninstalled.
