0x80070057 Parameter is Incorrect when copying .DAT file

Good day! I've been having this issue for quite sometime now.

I usually rent out Video CDs, but at times I can't watch them right away so
what I usually do is to copy all DAT files to my HDD for later viewing and
return the videos; However when I tried copying the DAT files I got an error
"0x80070057: The parameter is incorrect," although Media Player can play the
movie just fine. That means there isn't a problem with the optical drive's
read function.

Here's what I have performed:

- Copy DAT files in Safe Mode, no go
- Copy using command console, no go
- Uninstalled Roxio Creator DE, no go
- Reseated sATA cable connection on the DVD-RW drive and mobo, no go.
- Uninstalled DVD-RW drive in Device Manager, no go.
- Updated my mobo's BIOS, no go.
- Attempted to copy non-DAT file, OK.
- Deleted Upper and Lower Filter, no go.
- Reinstalled Windows Vista Ultimate, OK

But the problem appears again after a couple of weeks after re-installing
Windows Vista Ultimate. The last thing I remember installing is Microsoft
Virtual PC 2007. I have searched the web for posibble causes and most of them
points to image mounting which MS Virtual PC has buit-in.

Do you think this has to do with my DVD-RW drive being sATA? I hope anyone
can help fix this issue. This PC is configured for low power home
entertainment ans SQL Query testing. Thanks in advance.

Hardware:

PSU: AcBel iPower 510W
Main Board: P5VD2VM-SE
CPU: Pentium E2160 1.8 GHZ
RAM: 2 GB (Transcend)
VGA: ATI X600 SE 128 MB
ODD: TSST DVD-RW sATA (connected to on-board sATA),
HDD: 1 x 80 GB Seagate (connected to on-board sATA), 1 x 160 GB Seagate
(connected to PCI sATA card)


Software:
Windows Vista Ultimate 32-bit
AntiVir Personal Edition
Roxio Creator DE
MS Virtual PC 2007
SQL Server Express Edition

Internet connectivity:
Non-dedicated. Uses GPRS for dowloading emails and business transaction only
when needed.