M1210 - Windows stop responding after resuming from standby or hibernation

I'm reposting it from the official Dell Community forums since I didn't get any helpful replies there:


XPS M1210
Windows XP MCE 2005 SP2
2GB RAM
120GB HD

Windows stop responding intermittently after resuming from standby or hibernation, sometimes crashing to BSOD.

Description:

After resuming from standby or hibernation and Windows loads and I enter my password, opening applications causes Windows to stop responding. The weird thing is, any open applications prior to doing hibernation or standby still works properly; Windows only hang if I open new applications/programs. What I did before trying to resolve the issue: I reformatted the drive and did a fresh install of Windows XP MCE 2005. It worked fine until a few days when I noticed that the problem is back again. I then used System Restore to go back to previous states to see which one didn't have the hang problem yet. It worked. After that I tried to eliminate the programs/updates that might be causing the hanging. What I found out was that any system changes (new program installs, new updates from Microsoft, & the like) would seem to randomly cause the hang problem to occur.

For example, from the system state (saved by System Restore) I'm certain I don't have the hang problem, I installed Visual Studio 2005. After that, I had the hanging problem again. So I restored the system to the hang-free state, installed Limewire, then installed Visual Studio 2005. There was no hang problem.

Another one, from the hang-free state, I installed all the critical updates from Microsoft Windows Update. After that, I had the hang problem again. So I reverted to the hang-free state, and this time, only got about half of the updates. No hang problem. Then I got the rest of the updates. No hang problem after that.

So what I've been doing all these days was doing trial and error whenever I install new programs or program updates, and it's getting tiring. The worst part, I can't find any symptoms/problems identical or similar to what my notebook have from the Internet. Even on this forum, no one seems to have this problem. I was pretty sure it's software issue, but why isn't there anything about it online? I'm totally clueless as to what could be causing this. Any ideas?



UPDATE: If after turning on the laptop (Windows is hibernated) and I ran the System Diagnostics first for a while (press F12 key at Dell screen and choose Diagnostics) and reboot after, Windows no longer hangs if I resume from hibernation.