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[SOLVED] Strange problem / hoping for some insight

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Just to follow up... I tried every suggestion mentioned just for completeness. None of them worked. There must have been some system file somewhere that was not directly font related that was affecting the workstation and causing this issue.

A 20 minute XP repair install worked out of the box. Typically I never advise running a repair install but this was the only solution that worked. No user files were lost and only had to run about another 20 minutes of system updates to get the user back up and running. Who knew :)