In tip 0547, I described some common causes of Event 1000 / profile errors.

Both Windows NT 4.0 and Windows 2000 can 'suffer' from this additional reason:

When you configure the profile path, you accidentally had a trailing space.

You can spot this by navigating to the user's profile folder, looking at any subfolder:

D:\Profiles\UserName
D:\Profiles\Username \Cookies

NOTE: You are allowed to use leading and embedded spaces.