Find your connection seems to hang?

 The problem presents itself using SSMS, and as it turns out it is running something like
    saving auto recovery information

Change this registry setting to 0. This location was on the server.
    HKEY_CURRENT_USER\Software\Microsoft\Microsoft SQL Server\90\Tools\ShellSEM\General\AutoRecover

On my PC it was
    [HKEY_CURRENT_USER\Software\Microsoft\Microsoft SQL Server\90\Tools\Shell\General\AutoRecover]

Change this: