New processes blocked after connecting via dial-up

From: David Michael Paxton (dmichaelpaxton_at_hotmail.com)
Date: 06/03/04 

Date: Thu, 3 Jun 2004 15:30:49 -0500

On two very different computers, both armed with a full array of up-to-date
antivirus and anti-spyware protection, the following symptoms are observed
consistently:

-- Upon dialing into a basic ISP (my free connection through my university)
over a 56K modem, Windows XP refuses to allow any new processes to initiate
for up to ten minutes. Even task manager (via CTRL+ALT+DEL) refuses to
start until the process block clears.

-- If task manager is running before the dial-up connection initiates, no
excessive CPU utilization is observed; no unusual processes are listed.

-- If an IE window is open, most websites are accessible, though with some
occasional degradation in initially accessing a site. Also, CTRL+N will
generally open a new IE window.

-- However, once dial-in completes, no new parent processes will initiate
until whatever is blocking the creation of new processes relinquishes its
block.

Has anyone experienced, or even heard of, similar symptoms? How may this be
resolved?

System 1: Dell Optiplex
                3.0GHz processor
                2Gb ram

System 2: IBM ThinkPad
                700MHz processor
                256Mb ram

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