Resolution : Create the parameters key in the following location :
HKLM/system/currentcontrolset/services/csc/parameters
Then within the parameters key, create a DWORD Value named FormatDatabase with a value of 1 (hex) then reboot the machine.
The OEM version seems to come with it enabled, but not configured.
Disable it.
Reboot.
Go to the control panel, open the "offline files" control, disable or enable as you wish and then reboot.
Microsoft covers this issue here:
http://support.microsoft.com/kb/934160
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