Thank you for your post. I had the exact same problem and chkdsk solved it.

I've had this "Logon process failed to create the security options dialogue" problem for ages and it's really slowed my Laptop. I think I've narrowed it down to 2 firewalls being active on my laptop. My Dell laptop came with McAfee personal firewall installed. Originally I removed it just with the windows control panel add/remove programs but just recently I noticed it was still active in the windows security centre. I downloaded a removal tool from here

PC Hell: How to Uninstall McAfee

...and haven't had the problem since!

For what it is worth.
I run McAfee Security with built-in Firewall, Virus Control, etc etc. and also Lavasoft Ad-aware for Spyware control on a Dell Latitude Laptop. I had a regular update of Ad-aware a few days ago, and shortly afterwards the PC slowed right down - painfully slow - and everything was taking ages. CTL ALT Delete didn't work and it took almost an hour to get the system monitoring tools up to look at CPU usage etc. Tried to shutdown and restart but got the dreaded "Logon process has failed to create the security options dialog ..." pop-up window on a black screen during the restart. Proceeded on but PC still very slow.
I suspected a clash of Ad-aware and McAfee so I uninstalled McAfee and then re-installed it from scratch in case ad-aware had screwed some of the McAfee DLLs, but to no effect.
Restarted again but to no effect.
Finally decided to uninstall ad-aware and rely on McAfee for spyware control - as soon as I did this and restarted, the PC returned to normal operations and speed.

I am getting the same error message, but it started happening after I
let a child use my computer. I had to start it back up after the battery
died, and I told him to come and get me when it was ready for me to sign
on for him. I am thinking that he pushed some buttons or did some typing
in the DOS screen as it was booting up. Does this change what the fix
would be? His daddy knows computers, and said he would run some
diagnostics on it for me this weekend. I just thought it would be
helpful to give him some info on it.

thanks.


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I don't know if I can help, as I'm not any sort of techie at the operating system level.
My problem - as you can see from my post - was cured by removing the Ad-aware program. I'm assuming it was caused by a clash of spyware check programs with/without the operating system, since removing one caused the problem to disappear.
If you look at the thread of others with the same problem, they seem to have it from two firewalls clashing, or two virus checking programs etc.
Maybe your child started a second virus check program or firewall program?