One possible solution is the following. (if that was really the only change)
Log on as the local Administrator and verify that either the user or a group (of which the user is a member) has at least read access to the root of the system drive. To accomplish this if the desktop is blank, follow the procedure below:
Start Task Manager by pressing CTRL+ALT+DELETE .
On the File menu, click New Task .
In the Run dialog box, start Explorer.exe or Winfile.exe .
View the security permissions of the system drive.
If the user or group does not have this access, add it to the directory permissions for the user or group. Do not select the Apply To Subdirectories check box.
For additional information, please see the following article in the Microsoft Knowledge Base:
ARTICLE-ID: Q148437
TITLE : Default NTFS Permissions in Windows NT
MORE INFORMATION
If a user logs on to a workstation (either locally or to a domain) and is not listed by group or nameto have any access permissions to the root directory where the system files reside, the following problems can occur:
If the user logs on to the domain from the workstation or member server, he or she will get a dialog box with the following error, followed by a blank desktop:
Can't access this folder. The path is too long.
However, a profile is created in the %SystemRoot%\Profiles directory for that user.
If the workstation or server is not a member of a domain, or if the user decides to log on locally, the error message may or may not be displayed, but a blank desktop with the profile created in the profiles directory will occur.
there are some more instances that I have found on the MS KB, (passing the limit of maxpath, if this answer doesn't help search on the MS KB using the "path is too long" string,
regards,