I have multiple XP SP2 users that when they initially access mapped network
drives, the folders do not appear in Windows Explorer. The window will
freeze for about 20-30 seconds then the folders will appear. This behavior
will happen for the upper 2-3 levels of the directory structure.

If they access the same mapped drive with 30 mins, the folders will appear
without the window freezing. However if they access the drive more than 30
minutes later, they will experience the same issue.

I am running W2K3 AD network with an internal DNS server which forwards to
the ISP's DNS for request not in our domain. I have NetBIOS still active as
I have a few 98 machines which run legacy programs for test ovens.

I have already changed the registry according to the KB article 834350. I
did not apply the hotfix as from what I can gather this was fixed for SP2.