To get rid of this problem all you need to do is this:
- Press Windows Flag (Windows Key) + Pause break key. If you don't have the Windows key (most keyboards should have this - right beside the Alt key) just right click on My Computer and click Properties.
- Go to the 'Advanced' tab
- Under 'Performance' click on 'Settings'
- Under the 'Visual Effects' tab uncheck the first four check boxes
- More at the source: http://beyondteck.blogspot.com/2006/05/how-to-stop-sysfaderexe-error.html
Thanks Nicolas.