Msgsrv32 (not responding)?!

In my tech service work, I’ve come across a slight problem: On a Computer Running Windows 95 with a Cyrix 133 MHz processor and 64 MB RAM (oldie and not-so-goodie, apparently), when I first boot the computer, it hangs after the Win95 splash page ends and the desktop view starts. Ctrl-Alt-Del shows “Msgsrv32 (not responding)”. End Task kills the msgsrv, but doesn’t help the boot process. On restart the computer boots up fine. I’ve tried removing many background processes to no avail. What’s happening here? Microsoft.com is of little use. HELP!
Thanks!