I posted this also on the Novell Client side because I was not sure if it
is the Novell or Zen client that may have the problem.

We started seeing the problem in 491 and have since done two service pack
upgrades hoping this would solve the problem. We also have Zenworks 7
client installed on the computer so we have partly solved the problem by
making everyone Administrators of the local machine when they login but
if we make the power users or disable Zenworks and try to have them log
into the domain as domain users the computer will act like it is logging
in by accepting the username and password but after it leaves the Novell
client screen it will just sit at a blank light blue screen and the
Novell results never show up or the desktop. If I do a Ctrl Alt Delete
and run explorer then the desktop screen will appear but not until then.
If I remove the Novell Client and Zenworks and reinstall them it seems to
fix the problem. Only thing is we have 900 computers. Any thoughts on
the matter.