Thanks for the tip. You were correct in that YES, the problem did start after the Aug. security updates. What I failed to mention (but you caught it anyway) was that I had never done a full shutdown undocked after the patches were installed. Essentially I would boot up (undocked), dock, work all day, do a shutdown. After reading your email I recalled that each time I did this process Vista would say "configuring updates" when I did a shutdown. So it looks like I was just caught in a LOOP of some sort. After following your suggestion above everything is working.
So, here's how I fixed it. I undocked the laptop, boot-up. Logged in, shutdown and boot up again. After that it looks like all the windows updates were installed and now I can boot up without an issue in the docking station.