Thanks vinitjain! 

I came accross the same problem.  I had recently patched to SQL Server SP4.  I had this new program file (no extension) located in the root of my D drive, which is where I have the SQL Server program files.  The date on this file was 4/6/05, which corresponds to about the release date of SP4 (May 05), so I think that SP4 may be involved in the cause.  I was able to move the problem file and start SQL Server.

Thanks again!