Regression: Desktop Command Prompt opens wrong folder

After commit a17b6e9 the desktop Command Prompt opens in directory C:\Documents and Settings\Administrator\desktop instead of C:\Documents and Settings\Administrator which it did prior to this commit.
The "Start in:" directory is %HOMEDRIVE%%HOMEPATH%.
This should resolve to C:\Documents and Settings\Administrator as it did before the guilty commit. This works correctly in W2K3SP2 as you can see by the following: