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Upgrade to client 4.8.01-now Enable Start Before Logon no longer works

I have upgraded from VPN client v4.04b to 4.8.01. The Enable Start Before Logon feature now returns the following error message when I hit Ctrl-Alt-Del, instead of bringing up the VPN dialer logon box:

"Creating a secure connection to your remote network requires that

Microsoft be allowed to complete its initialization. Please wait a few moments while the system starts".

Then after a while I get:

"The Cisco VPN Subsystem was not able to start. You will not be able to

create a VPN connection before logon."

I have verified the vpnclient.ini RunAtLogon=1.

When I log into the PC and start the VPN client connection manually it is


Laptop is using XP, SP2