The users desktop is redirected to their Home Drive share. After more investigations we found that this problem occurred for any shared drive, even if it was to \\computername\c$ of the same computer you were on.
After searching the Internet we found no way to resolve this issue. There is mention of changing a registry key to "DontRefresh" which had limited success with others but didn't work for us.
We found this problem did not exist on another server in our environment and then we started looking into the differences.
Eventually we found it
Remove the following registry keys
Restart explorer and try again!
These registry settings were being applied as part of a performance upgrade script. I guess from a networking perspective it does create less network traffic but does make explorer unusable I believe.
Hopefully this fixes the problem for you!!!
Sam Google +