Pls Pls Help "Conflict with emulation software"

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Hello, I have a problem I need help with, You see I have the Retail Version of cnc 3 as well as The Sims 2, whenever I try running this retail games I get rejected during load and a warning pops up saying "Conflict with emulation software detected"

Now I whould be pulling out hairs over this but since I shaved my head I have no hairs to pull.

Can someone please help me with this mircosoft blunder? I am pretty sure it is mircosoft for all my programs worked fine up to the point where I installed the new service pack, now 70% of my retail games no longer work and bring up that error.

To answer other questions no I don't mount my game disks using iso I have power iso but use it to mount my audio cd's so I can listen to my music when playing games. And No I did not have it running when I tryed to load cnc3 or sims 2.

The only way I can see fixing this problem is a total wipe out of the hard drisk and reinstall of windows, I really don't want to do that, Please Help