Something is triggering the gamepad install script.
In my case it was my logitech universal receiver.
Got this from another thread...http://forum.linuxmce.org/index.php/topic,12297.0.html
The Problem was caused by the auto-installed Gamepad.
Solution for 1004:
1. Delete all Gamepad Devices from your device tree
2. Edit /usr/pluto/bin/Gamepad_Detect.sh and add a "exit 0" (insert it before "done")
### FIX FOR GAMEPAD
Thanks to tschak for the solution/wokraround