During last successful logon session:
I changed two spybot/teatimer accept/deny pop-ups and now suspect that this action may have caused this problem. Anti Malware updates and scans are frequently carried out using AVG 8, ZoneAlarm, Windows Defender and Spybot S&D 1.60.

Current Symptoms include:
Unable to login to Admin or other two Limited user accounts (Admin account is password protected). After attempted login the welcome screen status runs as follows:-
Loading your personal settings; Logging off; Saving your settings; back to welcome screen.

Action already tried:
In Safe mode I am also unable to login to Admin or other two Limited user accounts.
I have also followed your thread 33280 ‘Logon – Logoff loop, also caused by BlazeFind’ using the Recovery Console to copy userinit.exe to wsaupdater.exe successfully even though the file wsaupdater.exe did not list in the system32 directory beforehand.

I have been able to run a Mandriva Live cd on the pc without Windows booted and could try to make a backup of data but ideally I would like to avoid the ‘format c: drive’ route and export the last log file created by your application first, how can I do this for you to see?