The subject behavior occurs because installing Microsoft .NET Framework 1.1 adds a hidden local account named ASPNET, which Windows treats as an additional user.
To workaround this behavior:
1. Press you user name on the Welcome screen to log onto Windows.
2. Copy / Paste the following to an ASPNET.reg file:
3. Merge the ASPNET.reg file with your registry, or double click the ASPNET.reg file, or run regedit /s ASPNET.reg.
4. When you Restart windows XP, your desktop appears without any intervention.