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Ctfmon.exe is a file that is installed with Windows Office applications. It activates the Alternative User Input Text Input Processor and the Language Bar. The program monitors the active windows and provides text input service support for speech recognition, handwriting recognition, keyboard, translation, and other alternative user input technologies.  It also starts the language bar that appears next to the system tray.

Removing the Ctfmon.exe might cause problematic behavior in your Office XP programs, so removing it is not recommended if you use the Alternative User Input Text Input Processor and the Language Bar.

To prevent Ctfmon.exe from running, follow these steps.

Step 1: Windows XP

1. Quit all Office programs.

2. Click Start and then click Control Panel.

3. In Control Panel, double-click Add or Remove Programs.

4. In the Currently installed programs list, click to select Microsoft Office XP product, where Office XP product is the name of the specific Office product being used. If you are using a standalone version of one of the Office programs, click to select the appropriate product in the list. Click Change.

5. In the Maintenance Mode Options dialog box, select Add or Remove Features, and then click Next. This displays the Choose installation options for all Office applications and tools dialog box.

6. Place a check mark in the box next to Choose advanced customization of applications then click Next.

7. Click the (+) next to Office shared features then click the icon next to Alternative User Input and then select Not Available.

8.Click Update.
NOTE: If you have multiple Office XP products installed, for example, Office XP Professional and Publisher 2002, you must repeat the preceding steps for each installed product.

Step 2: Remove Alternative User Input Services from Text Services

1. Click Start, point to Settings, and then click Control Panel.

2.In the Control Panel, double-click Text Services.
NOTE: In Windows XP, click Date, Time, Language, and Regional Options, and then click Regional and Language Options. On the Languages tab, click Details.

3. Under Installed Services select each input item that is listed and then click Remove to remove the item. All items must be removed, one by one, except the following input service: English (United States)- default Keyboard United States 101

Step 3: Unregister the dll files Files

1. Click Start and then click Run.

2. In the Run dialog box, type the following command: Regsvr32.exe /u msimtf.dll

3. Click OK.

4. Again repeat steps 1 through 3 and enter: Regsvr32.exe /u msctf.dll

For complete details about Ctfmon see this MS KB article. Frequently asked questions about Ctfmon.exe