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I have had the same problem at the bussiness where I work. It has occured twice. In one instance we just re ghosted the comptuer. No problem seemed to get brought on by something to do with deleting a profile. The specific instances I saw this Autocad LT was installed which stores info in the local profile of the current logged in user. In both instances the profile that had the intial installation was deleted and this error started to occur. Tried everything I could find on the Internet. It almost seems like a bug in the registry restoration portion of Windows, so this problem may be independent of hardware, software, drivers, etc... It may be anytime there is a problem that requires the registry to be updated it may fall into this loop. Either way it sucks.
My next step is try SP2, if not then reimaging seems to work. Sorry if this is of no help,
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Chip
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