Well I have rebuilt my 1010 about 15 times trying to figure out what the heck was causing the system not to shut down. I could never isolate the problem. Base on the suggestion from woodscomp, I removed the following ETDWare entry from:
KHLM/Software/Microsoft/Windows/Current Version\Run
Then rebooted. Once the system came back up (after needed to hold the power button), I then did a reboot again. This time is shut down fine and came right back up.
I did not need to uninstall the driver to verify that it is in fact the Elantech Smart Pad drives that is causing the problem. I believe the issue is that the drivers do not shut down completely when requested by windows. That in turn causes it to appear that windows in frozen when in fact, it is just waiting for this app to close. In Windows 7, (which I have also tried 4 times), it has a similar problem. I get a message that a program will not close. Then a short time after that, the systems shuts down. I was never able to find what program it was. This appears the be the problem.
I had the same problem with XP Pro and XP Media Center 2005.
So if one of us could figure our how to get the app to close, we could solve the problem.
EDIT: After a few boots, the problem came back. So I went ahead and uninstalled the driver all together. It now seems to shutdown completely.
EDIT2: While there seems to be some improvement, I still get the hang at least every other time I reboot. So the Elantech drivers do not apprear to the the sole cause of the issue for me.
EDIT3: I have downloaded and installed the most recent version of the Elantech Drivers on the Dell site (R221529.exe 6/12/2009 Version 7.0.4.9 A06
Drivers and Downloads - Public Sector). My Bios is A05, but the most recent version of bios available for download is A04. Go figure. Anyway, it has helped a little. With the new drivers, it shuts down sometimes. It is totally inconsistent.
What I can say (after having installed so many different times) the issue happens only have a certain windows update is applied. The last few times I installed I kept a log of everything I installed and did two reboots after the installation. On the most recent rebuild, I did a restore and all was fine. I started doing the windows updates and after about the 5th or 6th wave of reboot and scans with windows update, the problem started. So it appears to be some incompatibility with a Microsoft recent update.