From this point I can load up regedit, navigate to the key, delete it, then launch explorer again and the desktop will instantly show up. If I kill the explorer process under the users account, the box will disappear. While this is happening, I can control alt delete to get to the task manager. If you let it sit there, after a random amount of time for each machine, it will eventually bring the user to their desktop. The user logs in and the 'Personalized settings' box shows up then shortly after, it goes into a 'Not Responding' state.
Batchfile [HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Active Setup\Installed 'Windows Desktop Update' 'ComponentID'= 'IE4_SHELLID' 'Enabled'=dword:00000001