Blue Screen Hanging after login.... Desktop Flashes to blue screen then refreshes

After logging in, screen stays at a blank blue state(no text) then after several minutes shows the start up page. I Click on desktop and it takes a while to load. While in the desktop it flickers to a blue screen and refreshes(I'm assuming) the desktop. Anything I had opened (ie:control panel) closes and just shows the desktop once it comes back. I have tired updating drivers. I have installed Microsoft updates. I have messed with the virtual memory as stated in other forums. Not sure what else to do. Any help would be greatly appreciated. I took a video with my iPhone and would send it to anyone willing to help. The problem is persistent and is slowing my comp down considerably. Safe mode everything works fine.

Dell XPS M1530 laptop
4gb ddr2 ram
Nvidia GeForce GT8600
Intel 2 DUO T8300 2.40 GHz
32 bit operating system, x64 processor

Would it be possible or necessary to move OS to external hard drive, then format or reformat laptop hdd? Thanks for any help!
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More about blue screen hanging login desktop flashes blue screen refreshes
  1. Sounds like it may be a graphics driver issue.
    What variant of the GT8600 is it? There's a GT, GTS and GS.

    Just to confirm you are running Windows 8 32bit?
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