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Event ID: 4006 Source: Winlogon

The Windows logon process has failed to spawn a user application. Application name: . Command line parameters: c:\windows\system32\userinit.exe.
See the "Vista or Server2008 stuck at a black screen and the desktop never renders" blog entry for some details about this problem. You can solve this by adding the NT Authority\Interactive in the local users group on Windows 2008.
One newsgroup post claims that the cause appears to be related to User Account Control (UAC). The suggested workaround is to disable UAC. This solution did work for me but I prefer to use UAC.
This issue occurs if the Userinit key in the Windows registry has been modified. For example, this issue may occur if the Userinit key has a value but no binary data. See ME929825 to solve this problem.

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