"Preparing Your Desktop" User Profile Issue
Guys, this worked for, hence pasting the solution here, I have been through hell with this and want to share with everyone. You may find my posts elsewhere too, if you do, I hope it helps.
I am not sure if your issue was resolved. I was facing a similar issue and it is resolved. Below is was my medicine. Jump to **Solution** if you don't want my background on the problem.
I am an admin in my company and for some reason when we switched to Win 7, I started to see the "Preparing your desktop" this was back in 2012. For whatever reason I was losing my profile every time I logged in. Reformatting my computer, registry fixes, deleting the profile etc did not solve the issue.
What helped: Fast forward to the date 11/24/2013. I was deploying a new PC for a colleague and accidentally logged into his computer using my login name which I had issues. As I was logging in for the first time, I figured it would say that its "preparing my desktop". I really became suddenly obsessed to try to log in again to see what I will find out and to my dismay the same issue repeated. New computer, after so many months and same problem. The first I did was log into my Active directory to examine my user account.
In doing so, I realized I was a member of lots of groups. Well, I said, I don't have to be a group of these Domain Guest Users, and there were several security groups, blindly I removed each one of them, only keeping the Windows 7 security group. Voila! in this process I had cleaned my account of any old security groups. I restarted the new computer, logged in, got the same "Preparing my desktop" wait I said,, let me create some test documents on the desktop,, I have logged in nearly about 10 times, with different scenarios so far, and I am happy to let you all know that my problem has been resolved!
I hope this helps somebody,