*** Update – this still happens with Internet Explorer 11 ***

I’ve seen this problem with SCCM 2007 and 2012 when distributing the IEAK versions of Internet Explorer 9 and 10 via an OSD Task Sequence.

Quite simply any domain account receives the ‘The User Profile Service service failed the logon’ error message and you get thrown back to the login screen.

To resolve the problem add in a Task Sequence script to remove the file C:\Users\Default\AppData\Local\Microsoft\Windows\Temporary Internet Files\SQM\iesqmdata_setup0.sqm, which is created by either version of the install, and your problem goes away.