I fired up filemon to see what was going on behind the scenes and I saw some interesting stuff... I tried to locate these files but can't find them. It will also not let me create them.

The files found as depicted in the image I've attaced are:

c:\$LogFIle
c:\$BitMap
c:\$Mft

I've never seen file names start with $. I know that some rootkits use this technique.. but normally start with a _. Example: _hiddenfile.ext in a directory with _hiddendirectory

These are in c:\

Does anyone know what or why these files are being accessed, but I can't find them?
They are running under system:4 privledges.

I've been searching for a bit now, and can't find anything on it.

I have up2date virus protection, a firewall, and regualarly capture traffic just to make sure that I don't have stuff accessing the web that shouldn't. I haven't noticed anything weird lately... by that I mean, unexpected traffic, connections or logs going off. I have also run trojan cleaners and adware cleaners.

<edit> My OS is XPpro with SP1 and all available updates and service patches </edit>

Ok, I tried to see if it was happening on a 2k box. It is not. I have nothing in the filemon logs for win2k referencing those... and I don't have another XPpro box on hand to check out.