Currently Being ModeratedSep 30, 2011 9:59 AM (in response to Frankns)
Hmmm ... Replying to my own message.
After booting into safe mode, and seeing no problem, I began adding back my login items one at a time.
It appears that the issues is with MenuEverywhere and 10.7 or 10.7.1. Disable ME and all is well.
I've opened a ticket with Binary Bakery.