Over the weekend, I installed and configured Small Business Server 2008 in my lab. Installation was fairly easy and went pretty smooth. Had no problems what so ever. After it got installed, I made a few changes and then applied Windows Update. It needed a reboot, which I did. That is when the problem started. After I rebooted the server, it would get hanged at "Applying Computer Settings" screen and won't proceed any further. I left it there for a while (about two hours) and it did not proceed any further...I rebooted the server (had to hard boot it) and then went into the Safe Mode to see if things are fine and working. In the Safe Mode, no problem occured.
I again let it reboot into its normal session but results weren't any better. Heck...what to do...so, I went back into the Safe Mode after hard booting it and then checked its network properties...I remembered that I had unchecked IPv6 option...it was pretty strange and I didn't really think that the problem could be due to this. I just checked it again and let the server reboot...within minutes, I was able to login... It seems that the problem occurs because IPv6 is supposed to be SBS2008's primary protocol...due to which it gets stuck on the "Applying Computer Settings" screen.
Nevertheless, this "accidental" solution worked and server is back in its normal condition. If you face the same situation, do make sure IPv6 is selected in the network card properties. Hopefully, this solution will work you as well...it did for me!
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