I Had this problem too.
Try this...
Goto:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon
The 'Userinit' string should read:
C:\WINDOWS\system32\userinit.exe,
(including the comma at the end)
If "C:\WINDOWS\system32\userinit.exe," appears twice in a row...
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