The reason this happens is because the IE8 installation will attempt to restart after installing, before notifying litetouch it is completed the install so litetouch will abruptly get closed and shutdown, causing it to spam a serveral error messages as it's being killed off.
In MDT edit Internet Explorer's command line to run with the "update-no" and "norestart" option. Then add a checkmark the restart computer after installing this application. See below for the complete command.
IE8-WindowsXP-x86-ENU.exe /quiet /update-no /norestart