In addition to the subject behavior, when you open a CMD.EXE window and type Ipconfig, you receive:
Insufficient system resources exists to complete the requested service.
This behavior will occur if the LogLevel Value Name, a REG_DWORD data type, at HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Setup is NOT zero (0).
NOTE: Uninstalling SP2, or a program that changes LogLevel, can cause this.
To correct this behavior:
1. Open a CMD.EXE window.
2. Type the following command and press Enter:
reg add HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Setup /V LogLevel /T REG_DWORD /F /D 0
3. Shutdown and restart your computer.