Windows 8.1 - Windows Couldn't connect to the System Event Notification Service service

I have an issue that has been bothering me for a while on new 8.1 computers. Standard users are not able to log into the computer on the first try consistently. They receive the error message: Group Policy client service failed the sign-in access is denied. They are stuck at the logon screen.

If an administrator logs in (local or domain), they can log in but get a black desktop with two error messages. The first is Location is Not available - C:\Windows\system32\config\systemprofile\Desktop is unavailable. The second error message is a popup balloon. It states "Failed to Connect to a Windows service. Windows couldn't connect to the System Event Notification Service service." I attached a picture of that error message.

When a standard user attempts to log in, event viewer records three warnings. They are listed in order from oldest to newest

The winlogon notification subscriber <Profiles> was unavailable to handle a critical notification event. -Logged 9:14:44

The winlogon notification subscriber <GPClient> failed a critical notification event. - Logged 9:14:44

The winlogon notification subscriber <Profiles> was unavailable to handle a notification event. - Logged 9:14:49

After a reboot, users still have the issue. I noticed that the user profile services and system event notification service are not running though their startup type is automatic. They start after a minute or two.
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Joseph MoodyBlogger and wearer of all hats.Asked:
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Thomas GrassiSystems AdministratorCommented:
Give this a try

1.  command prompt, right click - run as administrator
2. netsh
3. winsock reset
4. restarted my computer

Let us know if this helps
Joseph MoodyBlogger and wearer of all hats.Author Commented:
I still have the problem after following those steps. Thank you for the suggestion though.
Thomas GrassiSystems AdministratorCommented:
Have you tried this?

sfc /scannow

Lets see lf we have any corrupt files

Also what event messages appear?
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JohnBusiness Consultant (Owner)Commented:
Another repair that can be done for Windows 8 is DISM (if SFC does not solve the issue).

Open cmd.exe with Run as Administrator.
DISM.exe /Online /Cleanup-Image /Scanhealth (takes 15 - 20 minutes).
DISM.exe /Online /Cleanup-Image /Restorehealth (takes 15 - 20 minutes).
Restart the computer and test.
Is it with all win8.1 machines?
How are they setup, same image, clean install,...?
Roaming profiles?
Is it with local profiles, too, or with domain profiles, only?
If with local profs, too: Is it only after joining the domain or even before?

We have 8.1-only and I have never seen this.
JohnBusiness Consultant (Owner)Commented:
Just a question. These computers are Windows 8.1 Pro, correct?  Windows 8.1 with no identifier is Windows 8.1 Home and won't work on a domain.
Joseph MoodyBlogger and wearer of all hats.Author Commented:
I think I found the solution. There was a video driver update for the Intel HD Graphics 4400 that addressed this problem. So far - we've been good.

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You write "that addressed this problem", which, in my ears, suggest you found an article or something saying it is a known problem of that intel driver version. If so, could you link that info?

I have to admit that I doubt very much that that's the solution...but you never know :)
Joseph MoodyBlogger and wearer of all hats.Author Commented:
Thank you for your help in resolving this.
Joseph, it was really the driver? Any references from intel?
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