Login hangs at "Applying Group Policy Environment Policy"

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http://serverfault.com – Several users are reporting to the helpdesk that logins hang at the following stage: What is happening at this point? I have searched extensively but can't find what this refers to. I have also run several GPResults and can't find anything relevant. The workstations are all Windows 7 x86, our DCs are Windows Server 2008R2. (HowTos)