Logon scripts are hanging/looping, why?

A. A known problem exists as reported in Microsoft KB article 234049which can result in login scripts hanging or looping if a file called net.bat ornet.cmd exists in the netlogon folder of the domain controller.

This problem is caused by any client attempting net commands such as"net use" or "net time" which incorrectly uses the .bat filein the netlogon share rather than the correct net.exe on the client.

To resolve remove the net.bat or net.cmd from the netlogon share.