I had this trouble also and here is how I fixed it.

Boot windows in safe mode (by pressing F8 when prompted) and see if it asks you if you want to skip loading dm346bus.sys (I think that's it). This is a problem caused by the program daemon tools.

I used the captive-NTFS driver to delete that file, however whether I chose to load it or not, and even after I deleted it, Windows still gave me an inaccessible boot device Blue Screen O' Death.

So I booted my windows CD, acted like I was going to reinstall, but at the last minute chose to Repair the existing install. This peforms a repair/upgrade installation of Windows.

It didn't even break my Lilo bootloader. All of my windows drivers and programs were intact aftwards.