XP Event log shows a 111 error In the event log

Hmmmm, Check this out.

http://support.microsoft.com/kb/875528

Its saying this prob occurs on Windows Server 2003.

Cause: This error may occur when you connect a device that does not support the media ejection lock/unlock (SCSIOP_MEDIUM_REMOVAL) operation code. The error occurs because of a limitation in the Removable Storage component. Removable Storage does not expect the device to be connected, because the device does not support the media ejection lock/unlock operation code.