I am a network administrator. I have had quite a few computers that have had this same issue in the last two weeks. Normally I have to rebuild the computers which is very time consuming. Each computer has Windows XP Professional.
Basically, when I attempt to logon to any of these computers, whether it's logging onto the domain with a domain account or domain administrator account or whether logging in to the local computer with the local administrator account I get the same issue. This is the error message I get:
"Windows cannot load the user's profile but has logged you on with the default profile for the system.
Detail - insufficient system resources exist to copmlete the requested service"
It also has a timeout session of 29 seconds before it logs you back out. If I click 'OK' before the 29 seconds is done I get another message:
"Windows product activation
A problem is preventing Windows from accurately checking the license for this computer. Error Code: 0x80070002"
Then it logs me off.
I attached the hard drives of one of these computers to another computer and ran Anti-virus software and did not detect any viruses. I did discover two malware programs though with an anti-malware program and removed the malware. However, this did not resolve the issue.