Explorer hangs when you attempt to release or change ISO

ReactOS 0.4.12-dev-822, VMware Workstation 9.0.1.

• After the 2nd stage setup, I did not release ReactOS ISO and booted to desktop with it attached to VM.
• Done almost nothing, when I changed ISO to install VMware Tools and opened up My Computer, Explorer hung. The window opened but it did not render the contents. It was non-movable, resizeable or closeable. Desktop was responsive (right click and starting Command Prompt from Desktop worked), but Taskbar was not. However, you could open Start Menu with WinKey.
• I moved Command Prompt window around to test responiveness. Massive flashing did occur.
• Shutdown was longer than normal (~5 minutes), you could still invoke commands via prompt after commanding shutdown.

Debug log attached, it shows many messaging errors.