I can also reproduce drive letter shifts
Just built a brand-new HP system: Win XP MCE 2005, the latest demo version of VCD 8, started doing various installs, everything working fine. Then the drive letter started shifting on reboot to the first available non-floppy letter (D: in my case).
Last install was several web-related items, including ZoneAlarm (also latest version just downloaded).
So I removed ZoneAlarm, and the problem disappeared immediately. Rather disappointing, since I like ZoneAlarm, but since I have another firewall, I only use ZoneAlarm for detecting spyware anyway.
Just thought you might like more confirmation that it's ZA related. And that, for me, removing ZA fixed it instantly.
Regards