The way to fix this is to delete \Windows\System32\FNTCACHE.DAT. The file will automatically be regenerated on the next boot.
(Information found on Microsoft Support Forum and used to successfully fix my own system.)
How do you delete the file if you can't boot?
(1) Press F8 during boot to get to the Windows boot manager advanced options screen.
(2) Select "Repair".
(3) Provide password for a local account that's a member of the Administrator group.
(4) Select "Command Prompt".
(5) Find drive letter assigned to Windows partition (may not be C: in the repair environment!).
(6) Delete \Windows\System32\FNTCACHE.DAT.
(7) Exit command prompt and reboot system.
And now, since this is /., here is the required Windows bashing...
This bug demonstrates the danger of running your GUI in kernel mode (win32k.sys). One stray pointer can ruin your whole day. In this case the pointer was sufficiently invalid to cause a bugcheck. A stray pointer that silently scribbles on other kernel data structures is even worse.
"Those who would give up essential Safety, to purchase a little temporary Performance, deserve neither Performance nor Safety."