r73036 and yes this is mostly reproducable
I tested that with nLite 22.214.171.124, but I guess every .NET app is affected (in other words it's a .NET issue)
steps to reproduce:
-install .NET2 or .NET2SP2
-reboot the system (everything is still fine then)
-start nLite 126.96.36.199 (or most likely any other .NET app) (everything is still fine)
-close the .NET app
This is when hell comes to earth:
-the mouse pointer is flashing in a strange manner
-everything (from dragging a window to doing commands) is suuuper slow
-we can not type into the run-box
-we can not shutdown the system anymore
-when I typed the smiley at end of video there was total system freeze and I could not move the mouse any longer
The video r73036-dotNet2ChaosVideo.rar documents my actions.
Surprisingly not much is written into r73036-dotNet2Chaos.log at the same time.
Something is seriously corrupted within ros obviously.
(After next reboot via hard reset it is not longer possible to start up .NET apps)