[THIN] 60 Second pause at launch

I am working with a vendor (AGFA) to get their application to run on PS4.5 running in Win2K3-R2.  I have the problem that PS4.5 Rollup Pack 2 breaks their application, so I remove the Rollup 2 and their app runs OK, but there is now a 60 second pause when launching the application (or any application on that server).  I see the following in the USERENV.LOG file:

USERENV(1060.808) 10:09:53:069 PolicyChangedThread: Leaving

USERENV(714.280) 10:09:53:084 LibMain: Process Name:  C:\WINDOWS\system32\userinit.exe

USERENV(714.280) 10:10:53:429 CheckXForestLogon: checking x-forest logon, user handle = 360

 

Does anyone have an idea what is causing Userinit.exe to pause right there for 60 seconds?

 

Thanks,

 

George