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I have been working on solving this problem for about a week, but finding the solution is becoming very tedious. This is the scenario: Our TS is able to do migration from XP to 7 without any issues. Out TS is able to do refresh from 7 to 7 until recently. The refresh scenario introduced a nasty problem on our last Win7 image (meaning, the same TS with an earlier Win7 image worked fine. The difference is about 32 updates added to our production image). In the refresh scenario everything seems to works well: all data is migrated, and user accounts who were in the system earlier are being moved properly and able to login and work. But, if a new domain user tries to login into the machine you will get the following error: The User Profile Service failed the logon. User Profile cannot be loaded. I have been trying to trace the problem and it seems to be related to the USMT on the settings for I believe the default user account. This issue was introduced (from what I can see) by one of those 32 updates. Any of you have any information about this kind of problem? Thanks Max