SBS login script starts but does not stop on client computers

There is most likely a group policy pushing the setup.  Open your group policy manager & see what group policies are defined under your domain.  You can enable or disable the group policy if you wish.

I don't know the purpose of the .exe, so I can't address what it may be hanging on.

Sorry I forgot to include that info.  This is the default login script in SBS which is setup in the GPO.  I hate the idea of disabling it unless there's a good reason.  

That's fine - obviously, the pc is having pblms with the exe.  

I'd be interested in seeing the event logs to see if there are any errors to indicate why it's hanging (if you open computer management on a different PC, you can attach to the problem PC by right-clicking on "Computer Management (local)" and choosing "Connect to another computer..." -- you'll need to be a domain admin).

Also - to test the exe on the PC manually, you'll need to get logged into it first.  Try disabling the GP for the pc (create a new OU in Active Directory  & set it to "Block Inheritance"), or temporarily disable it globally.
Log into the PC, run the .exe manually & see what happens.

Thanks Jeff.  I'll give that a shot Monday morning.

Jeff,
I followed your steps but there were a couple weird points.  The registry key I was suppose to delete did not exist.  Additionally I renamed and readded the computer to the network using the SBS wizards but still had the same problem.  So I did a system restore and readded the computer to the domain throught the System Properties and the script is now running fine.  Very strange.  

If the registry key didn't exist, then you had permissions problems in your registry -- perhaps corruption of the permissions.  Doing a system restore probably fixed those.  Not really a strange issue, it happens.  

Jeff
TechSoEasy