Update: Most instances of this problem are due to the Control Strip module OT/PPP Strip. Disabling or removing the module should eliminate the problem. There is an OT/PPP Strip web page that documents this. (Thanks, Michael Tiffany and Alden Thatcher.)
If this doesn't solve it for you, other suggested culprits have been suggested. These include Norton Utilities, Ethernet software or hardware, the AppleScript extension (Mark Hattam) and updating to Drive Setup 1.2.2 (Bruce Baker).
By the way, according to the MacErrors utility, error 1010 is a "DS error which is specific to the new runtime model introduced with the PowerPC."