Database Mail error - Whitespace is not allowed at this location.

database mail is giving below error

1) Exception Information
===================
Exception Type: Microsoft.SqlServer.Management.SqlIMail.Server.Common.BaseException
Message: The read on the database failed. Reason: The error description is 'Whitespace is not allowed at this location.'.
Data: System.Collections.ListDictionaryInternal
TargetSite: Microsoft.SqlServer.Management.SqlIMail.Server.Objects.QueueItem GetQueueItemFromCommand(System.Data.SqlClient.SqlCommand)
HelpLink: NULL
Source: DatabaseMailEngine

StackTrace Information
===================
   at Microsoft.SqlServer.Management.SqlIMail.Server.DataAccess.QueueDataReader.GetQueueItemFromCommand(SqlCommand c)
   at Microsoft.SqlServer.Management.SqlIMail.Server.DataAccess.QueueDataReader.GetQueueData(Int32 receiveTimeoutSec)
   at Microsoft.SqlServer.Management.SqlIMail.IMailProcess.QueueItemProcesser.GetDataFromQueue(DataAccessAdapter da, Int32 lifetimeMinimumSec)

2) Exception Information
===================
Exception Type: System.Data.SqlClient.SqlException
Errors: System.Data.SqlClient.SqlErrorCollection
Class: 16
LineNumber: 1
Number: 6602
Procedure: sp_xml_preparedocument
Server: CHN-HCLB-2VS05
State: 2
Source: .Net SqlClient Data Provider
ErrorCode: -2146232060
Message: The error description is 'Whitespace is not allowed at this location.'.
Data: System.Collections.ListDictionaryInternal
TargetSite: Void OnError(System.Data.SqlClient.SqlException, Boolean)
HelpLink: NULL

I have tried all possible solutions available on internet but unable to fix it. 

The environment is windows server 2008 and sql server 2008 r2 standard edition 64 bit.

Its working on a different machine with similar configuration. Need help!!!

Cheers!!! SqlFrenzy