Virtual drives cause Windows to crash

Before I start, let me note that anything noted below is marked as
vista-compatible, and were installed through the most recent versions.

For some reason, upon installing a virtual drive such as a litteral network
drive (Ximeta NDAS), or a virtual DVD drive (Alcohol 120%), Windows seems to
get confused. The first thing that goes wrong is that My Computer or Drive
Management will load and then stop responding, displaying all but the newly
installed virtual drive. After which, an error pops up saying that Microsoft
Windows has stopped responding, and lets you choose weather to close it or
let it wait.

If you then restart explorer through Task Manager, the process will show up
and nothing will happen. If you then relaunch winlogon through the run
window, the task bar will show up, and the same error message will show up if
you click on it or the desktop. If you reboot, it will let you boot into
regular windows once, and repeat the same process. Reboot again, and it will
crash on the login screen before it even displays.

The only cure I've found to this is to boot up in non-networked safe mode
and then remove any related startup programs and services, then make sure the
program itself is completely uninstalled. If wose comes to worst, you end up
needing to load a system restore.

Has anyone else found this, and if so, found a way to make virtual drives
work?