Update (Oct 12, 2009): This seems to be a problem that occurs when Symantec Endpoint Protection is installed.
I’m beta testing Windows 7 RC, and it’s shaping to be a very nice operating system. I just hope this “Preparing your desktop…” problem will not trickle down to the final version. It seems related to the “Your User Profile Was Not Loaded Correctly!” problem I had with Windows Vista. Whenever this happens, I get a blank desktop and the theme is set to Windows Classic (non-Aero). It is obviously still related to User Profiles.
C:\Windows\system32\config\systemprofile\Desktop refers to a location that is unavailable.
Tags: Beta, Errors, Issues, Microsoft, Release Candidate, Screenshots, Windows 7