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Sounds like theres some nastiness on your syste. I dunno why Daemon Tools would have reinstallation problems! Did you reboot after uninstalling?
If so try the same thing, but using Alcohol to mount it (and change the 2 antiblaxx settings accordingly). By all accounts it now seems it may have been D-Tools causing the aggro.
EDIT: - Now that I think about it I HAVE heard reports of antiblaxx and daemon not getting on well for some people, though I've had no problems. Perhaps this is the issue? Well try A120% and we'll take it from there mate.
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