I restarted and it spent an hour at "applying computer settings". When I checked the event log I found the below.
Event ID: 6006
The winlogon notification subscriber <GPClient> took 3598 second(s) to handle the notification event (CreateSession).
It is also accompanied by event id 6005 you would suspect.
I did find and follow http://support.microsoft.com/kb/2004121
but it was not relevant.
We are Running SBS2008 with AD, WSUS, Print, File, Mail, Security, DHCP & DNS.
Any Feedback is appreciated.