I know it sounds strange

I support a executable designed to scan system hardware and software information.

A customer, I have, executes this executable with a KIX login script. When in place a user is not able to login. When REM'd out the user is able to login. He tells me that, when the KB is installed the users cannot login when not installed his users can login and run the executable.

Apparently the KB Artical is designed to restrict EXE from running on remote PC.

Here is the login script
; Kix32 NT Inventory collection logon script for Peregrine IDD scanner
; Jon Dunford
; 31/08/01

;Revisions:
;(author) Jon Dunford
;(date) 10/4/01
;(changes) Full Path for commands for machines which have errors in path statement (c:\winnt\system32)
;(author) Jon Dunford
;(date) 13/7/01
;(changes) Include NT Servers
;(author) Jon Dunford
;(date) 31/8/01
;(changes) Removed -10 switch for servers
;(date) 24/04/02
;(changes) Defined copycmd variable for Windows 2000 machines

$SCANNER="scanw32.exe"
$AMSERVER="\\IRA80130"
$SRCDIR="$AMSERVER\scanner$"
$SRC="$SRCDIR\$SCANNER"
$DESTDIR="C:\InfrTool\DeskDisc"
$DEST="$DESTDIR\$SCANNER"
$FSF="$AMSERVER\fsf$"
$PTH="C:\WINNT\SYSTEM32"

$os=""
$os_dos=@dos
$os_product=ReadValue("HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\ProductOptions","ProductType")
$os_service_pack=""
$os_subversion=ReadValue("HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion","SubVersionNumber")

IF (@inwin = 1)
$NT_mode="yes"
ELSE
$NT_mode="no"
ENDIF

; Determine Operating System type
IF ($NT_mode = "yes") AND ($os_product <> "WinNT") AND ($os_dos = "5.0") ; - Windows 2000 -
$os="W2k_Server"
ELSE IF ($NT_mode = "yes") AND ($os_product = "WinNT") AND ($os_dos = "5.0")
$os="W2k_Professional"
ELSE IF ($NT_mode = "yes") AND ($os_product = "LANMANNT") ; - Windows NT -
$os="NT4_Domain_Controller"
ELSE IF ($NT_mode = "yes") AND ($os_product = "ServerNT")
$os="NT4_Member_Server"
ELSE IF ($NT_mode = "yes") AND ($os_product = "WinNT")
$os="NT4"
ELSE
$os="???" ; - undetermined -
ENDIF ENDIF ENDIF ENDIF ENDIF

SET "Audit=0"
SET "copycmd=/y"
SET "USERFULLNAME=@FULLNAME"
SHELL "$PTH\CMD /C $PTH\PING 151.1.79.69 -n 1 -w 1500 > c:\temp\ping.txt"
SHELL '$PTH\FIND "Reply" c:\temp\ping.txt'
IF @ERROR = 0
IF ($os = "NT4") OR ($os = "W2k_Professional")
; Perform Audit

IF INGROUP("AuditExclude") > 0
SET "Audit=12" ; In AuditExclude Group
ELSE
SET "Audit=1" ; Performing Audit
IF EXIST ("$FSF\%COMPUTERNAME%.LOG") = 0
; Log does not exist
SHELL "$PTH\CMD /C ECHO FirstAudit %COMPUTERNAME% @USERID @FULLNAME > $FSF\%COMPUTERNAME%.LOG"
SHELL "$PTH\CMD /C ECHO PATH = %PATH% Logonserver = @LSERVER >> $FSF\%COMPUTERNAME%.LOG"
ENDIF
IF EXIST ("$DESTDIR") = 0
; If destination dir does not exist then create
SHELL "$PTH\CMD /C MD $DESTDIR"
ENDIF

; Copy scanner if newer to local machine
SHELL "$PTH\CMD /C C: && CD $DESTDIR && $PTH\XCOPY $SRC /D /Q"

IF EXIST ("$SRCDIR\@USERID") = 1
SET "Audit=2" ; Performing Audit
SHELL "$PTH\CMD /C START $SRCDIR\scanw32f.exe"
ELSE
; Run the scanner if required
SHELL "$PTH\CMD /C START $DEST -scandays15"
ENDIF
ENDIF
ELSE
SET "Audit=14" ; Flag Server

IF EXIST ("$FSF\%COMPUTERNAME%.LOG") = 0
; Log does not exist
SHELL "$PTH\CMD /C ECHO FirstAudit NT Server %COMPUTERNAME% @USERID @FULLNAME > $FSF\%COMPUTERNAME%.LOG"
SHELL "$PTH\CMD /C ECHO PATH = %PATH% Logonserver = @LSERVER >> $FSF\%COMPUTERNAME%.LOG"
ENDIF
IF EXIST ("$SRCDIR\@USERID") = 1
SET "Audit=15" ; Performing Audit
SHELL "$PTH\CMD /C START $SRCDIR\scanw32sf.exe"
ELSE
; Run the scanner if required
SHELL "$PTH\CMD /C START $SRCDIR\scanw32s.exe -scandays15"
ENDIF
ENDIF
ELSE
; Server Offline
SET "Audit=13"
ENDIF

Here is the KB Artical
http://www.microsoft.com/technet/treeview/?url=/technet/security/bulletin/MS03-039.asp