Try booting into safe mode to see if problem persists. If it does not, then
you have an issue with a startup program/service/driver which you can
troubleshoot by getting a copy of msconfig from an XP computer or SpyBot
Search and Destroy with advanced/tools. Otherwise it could be virus or
corrupt secedit.sdb file. See link below for more specifics. --- Steve
We had a similar problem with an old version of IBM Client
Access. It would hang on "applying computer settings". We
fixed it by upgrading Client Access to version 5.1!