had a laptop turn up, the owner let Windows update install the updates and restart the system. After the Restart the desktop loaded but only has the recycle bin, with the classic mode Taskbar, icons missing and Black background (wallpaper missing). A dialog box appeared with:-
"C:\windows\system32\config\systemprofile\Desktop refers to a location that is unavailable. It could be on a hard drive on this computer or on a network. Check to to make sure the disk is properly inserted.........................
I tracked down the problem, (much easier in front of the system than over a forum.
I have found there is a problem with the Netsvcs for whatever the actal cause it and added into the registry a good copy of the registry data.
Restart the system after and bingo, all of the desktop is back and acting as it should be and was before the installed updates.
I have attached the Windows 7 / Vista, reg key for anyone else that has the problem.
Quads