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Server hangs up on applying computer settings.

We have a server running SBS 2003 R2 that went down over the weekend. Since then we cannot get the server to boot normally it hangs up on applying computer settings (Mouse is functional and you can move the window) We can boot into safe mode ok. Besides starting services what else happens while Applying computer Settings?
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Ruscal
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The group policy structure is applied to the machine from the domain, thats literally what applying computer settings is saying.  Make sure that the network connections are active (connnected and alive, or go into safe mode and make sure you can get the net).  Most times this happens it will clear by itself (given enough time) and the load will finish.  My personal experience is that this happens a little too often if you just made a GP change and the server knows about it, but lost network connection during the update process.

My first suspect, though, would be that the network connection is causing this delay.
I agree on the network connection issue...
I usually find that its' a DNS problem... It keeps looking for the DNS to resolve the domain name.
Make sure that all the NIC lights are lit up
Does the server eventually login?  I've waited up to an hour and then it corrects itself and the problem goes away.
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We have waited several hours with no logon screen. Would you recommend disabling any services to test the network and / or GP Idea?
Try disabling the network cards in the safe mode and see if that gets you in.
oh also, can you revert back to last known good configuration?
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Tried last known good  - no luck there. Right now I am trying the msconfig and enabling services a dozen at a time. So far renabled about 40 of them and am able to logon still. I will try disabling the nic here shortly if this does not pan out. Thanks for the assist to both of you I feel like we are moving forward on this and zeroing in on the problem
Glcs -- Thats always good to hear.  In my experience it hasn't been a service once, but not being able to contact a group policy server (normally the PDC).  And this has happened to me quite a few times.

Not trying to discourage the disable/enable service route (I'm always a fan of good, methodological troubleshooting) but I'd still be warray of the net connection.  Anything to keep it from talking to the domain controllers: bad cable or nic (normally my problem), wrong ip address settings, new firewall configurations, or changes to router configurations are all suspect at that point.  Of course, the easiest to check is normally the cable and NIC, and fortunatly thats normally where the problem is.

Best of luck to ya.
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This computer is the domain controller (Running SBS 2003R2) so everything is on here. I do find it interesting that when I boot in safe mode or safe mode with networking I do not see the nic card or network connections. even tho the network connections service is running. Many a puzzle on this :(
yeah, that sounds like it could be doing some rather strange things.  Even on the DCs, the network connection is still used to update group policy (the connection is simply made back to itself).  So if you are having NIC problems that would defiantly do this.
No NIC card even in device manager under safe mode?
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No NIC in device manager. but when I had many of the services disabled I was able to acces the internet when I booted up. So I believe the NIC is functional.
>> but when I had many of the services disabled I was able to acces the internet when I booted up

Was that in Safe mode, or did you get in the normal mode?

If you got in the normal mode, try to disable antivirus and any databases you may have running... SQL, etc...

Also, if you aren't using IIS, shut it down

More thoughts: Do you have abackup of the AD?
I'm thinking that it may be trying to rebuild the index for AD
Another one:  Corrupt profile!

Can you see if you can login with another domain admin ID?
Oh actually, pardon my hiccup... You're not even getting a login prompt, are you?
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No, Not while booting with all services enabled. I Have disabled the AV, SQL and IIS and am trying a restart now. We do have a backup domain controller in another building. I doubt this has replicated since the trouble occured
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OK Here is the latest I have been able to get into normal boot with just the MS SQL for the intarnet etc. disabled , HP Services,and trend Micro disabled. I did boot with IIS off and just booted with IIS on. next I will reenable the SQL Items.
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glcs
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I don't know about cmarandi, but offering my help here keeps me from going crazy during the (all too little) down time at my desk job.  I hope you have good luck with the WSUS services.  I know there are a number of us here who know that product quite well too (myself included) so if you have any problems there make sure and bring 'em back ;)