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23 Aug 2009  

Windows 7 Ultimate x64

Yes, it was Microsoft Security Essentials causing the issue, in particular:

C:\Program Files\Microsoft Security Essentials\shellext.dll

Somebody had already opened a bug report on Microsoft Connect so I added my two cents there.

Thank you again Dinesh, I can rest easy now knowing what the problem is, it's been bugging me for well over a month now.
My System SpecsSystem Spec