Ahaha that's funny .. Interrupting the setup process just to have D: formatted. I recently had this problem this weekend. And now I know what's causing it. My two cents, if you do not want to interrupt setup: 1. I assume you want to use C: for Windows and D: for your data. 2. After partitioning your hard drive, this leaves all your partitions unformatted. 3. Using the original XP CD, install Windows into C: and actually finish the whole process. 4. Then when you can actually get into Windows, format D: using Explorer. 5. This time, using your nLite XP CD (which sets ProfilesDir = D:\Documents and Settings), reinstall Windows into C:. Drive D: will have been already formatted, so Setup shouldn't have problems writing to D: for your Profile folders. I'm quite confident that this works. It's what I'll be doing next time I'm doing general cleaning for my PC