1] Look in the System Configuration Utility to see what is trying to load on bootup. (Start > Run, type in msconfig, click OK, then click the Startup tab).
If there is anything there for sysdata.xml, or anything else you are suspicious of, remove the tick. I don't think sysdata.xml should be there because I believe it is a log of a recovery from critical error and the log would normally be held in a Temp folder.
2] Do you use ATI Radeon video graphics? If so have you updated their drivers recently? Microsoft has a KB article on this here.
3] Search Google for Sysdata.xml bootup error
There are a number of articles there for you.
When desktop appears, the "send" "don't send" to MS appears with the sysdata.xml error and minidump file. I have deleted them, ran spybot, Adaware, MS Antispyware, AVG, CWshredder, HijackThis, Cleanup, Registry Mechanic, RegClean, Error checking/defrag, over an over, it still returns on bootup.
Performed RAM test, replaced with new sticks even though they tested ok, and was wondering about installing SP2 (I have it on CD). This installation has no SP's. What are the possibilities of problems upgrading tp SP2, and could it fix the sysdata problem?