I had an issue with this process maxing out my processor – Something to do with time not syncing according to Paul Devenney’s blog. This fix has worked for me though.
This hotfix has fixed my problem. My local PC had 2003 and 2007 Office products installed which confused things a bit.
So…. after a disk failure, a VM switch failure, running out of electricity and a catastrophic MOSS service pack installation failure (upgraded the binaries without upgrading the database – Doh!), I have now built my SharePoint 2007 development environment and…. and it appears to be working!