I've been having the exact same problem as everyone else here (window frame loads, but desktop still shows through, freezes just like that). It's definitly being caused by one of the windows services. I got kazaa working fine after I closed SVCHOST.EXE in task manager (there were several in there, I got lucky and closed one that didn't restart the computer... it was the svchost using the most memory if that helps). Now I just have to go through and see which services were running under that svchost and try disabling them one by one. If I figure anything out I'll post an update.
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