I believe you have a compatibility issue between XP SP2 and TD. You had better open an issue with Mercury as they say that only TD 8.0 & 8.2 are compatible with SP2. At least that's how I understand it. We are using TD 7.6 with XP SP2 and have had no issues. Mercury may have a patch for you.
Success is the ability to go from one failure to another with no loss of enthusiasm.
~ Winston Churchill ~