Again, I am just glad you got this sorted and now we all know how to fix it… until we forget and can’t find it when we search in the future because we don’t remember the exact “term” to search. It will happen… guaranteed. 
Also, I agree with Suntower about needing a properly documented and indexed operation manual.
Now for some more babble about the fix…
Glad the fix works but, it is lame. Period!
Having users delete a program file is not “professional” at all. Give me a break. Some users went through this same crap when in CB7 they had to move out all files with the word “video” in it from the Cubase components folder to get CB to stop hanging during startup. Users who did that then had problems upgrading to CB8. Mommalouie!
Sorry but, I am 
for Steinberg for these programming issues.
Regards 