Turns out the problem was the CD drive and DVD burner in my box... they run on PIO drivers rather than DMA. I have an external DVD burner that's newer... so I disabled the two internal drives in the Control Panel and everybody is happy now. TonePort UX2 needs drives that use the DMA, and Line 6 Monkey warns you about it.
I also deleted all of my Creative software suite... so now I have my internal sound card and both internal drives disabled. I hate to make the move to a new computer, since this one is fast enough and has been very reliable (eMachines T5026) and I've upgraded it with a meg of RAM but rolled back an upgrade to XP3... Windows XP SP2 is a very stable environment, in my limited experience.
Thanks again to everyone for their help... I hope this can assist anyone else who is having TonePort driver issues. First, pay attention to what the Monkey tells you when you run the Line 6 Monkey compatibility check!
With our music systems cobbled together with so many different products put out by different companies, it's a miracle that they work at all. My job is with a software company and our own in-house software is buggier than heck, so I'm used to these headaches.