Thanks Phill and Rob.

This is indeed a per-machine install.

The issue does appear to be due to resources related to the user profile not
being available to the managed bootstrapper. I have verified that the error
occurs when there is no logged in user, though not every single time. 


I have narrowed it down to a combination of two things, not necessarily
inclusive: (a) The service leaving orphaned handles to the user registry
hive and (b) the windows user profile service proactively killing any user
registry hive handles that the service has left open for the bootstrapper to
use. 

So far restarting the service seems to mitigate the issue, I believe by
clearing out any orphaned registry handles, before the bootstrapper is
invoked. An alternate solution may be to create the process using the native
C++ call via P/Invoke and letting the child process inherit handles (the
.NET call doesn't seem to allow users to explicitly specify inheritance of
handles). This should prevent the user profile service from detecting the
registry handles as orphaned and allow the bootstrapper to use the user
profile's resources as needed. 

I am continuing to work through this issue. Will post here as and when a
definitive solution is found.



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