I have a server that hosts about 20 virtual machines. The VM's all use Windows XP. When you log in to any of them after booting them up, it will take about 3-5 minutes to log you in and freeze up on "Applying Computer Settings". If you just log out and log back in however, it will log you in quickly as if your info is stored somewhere. I believe this is an issue with Group Policy settings being applied and taking a while for some reason. I looked at the USERENV.log but it is filled with symbols and is illegible (This is another issue, any ideas about that?) I think that log could be helpful if I could get it to work.
I wouldn't call it an ISSUE per se, but it's probably caused by the machine having to load the user profile, and then create a local copy and configure the applications to use that profile. The second time you log in, there's already a profile saved on a local copy, so it doesn't need to create that again.