I had the exact same problem. Spend two hours before figuring out how to get rid of it.
I thought it was the new 40.41. If I reinstalled 29.42 the error message went away. Entered safe mode and delated all files nv*.* Then reinstalled 40.41 and same error message appeared.
I think NvQTwk is a nvidia tweeking program. I've installed and uninstalled so many I'm not sure which one it is exactly.
I uninstalled all nvidia tweeking programs. Still got the same error message.
Turns out the registry had an entry to start that program every time win loaded even though the program was not there. Deleted that registry entry for start up programs and, viola, finally no error message.
I have win2k. No msconf in it. To get at your start programs in the registry:
1. Click "Start" and choose "Run." In the "Open" command line, type REGEDIT and press [enter]
2. CLick on the plus (+) sign next to HKEY_LOCAL_MACHINE
3. CLick on the plus (+) sign next to SOFTWARE
4. CLick on the plus (+) sign next to Microsoft
5. CLick on the plus (+) sign next to Windows
6. Click on the plus (+) signnext to CurrentVersion
7. Click on the RUN folder, the contents will be displayed on the right side of the Registry
8. You probably will want to create a back up of the RUn folder by clicking on "Registry" then "Export Registry File" This will create a .REG file which can be easily merged back into the registry by double-clicking on it at any time (from explorer)
9. On the right side delete the registry entry for this program. The entry was "Rundll32.exe NvQTwk,NvCplDaemen initialize"
10. Once I deleted that registry entry, no more error message.
If you have win98 I think you can probably find this in MSCONFIG under your start up programs.
Hope this works for you.