Well, this problem was bad during the Beta and seems to replicate itself on certain machines. I run Windows 7 Ultimate and the Wife Runs Windows Xp Pro. She has not had the login problem once and can readily login my character on her PC. This got me to thinking and doing a bit of testing myself.
It seems that Windows 7 is picky about what is able to write to certain directories , much like the way Vista used to until certain changes. I decided to test the theory and " Copy the Cryptic" Directory to a new location on the drive. After doing so I was still getting the same issue. One step further was I did the Uninstall in the Control Panel Add/remove programs and then added the New location for the Launcher to the Exceptions list for the Network and a shortcut to the desktop
If you copy the data from the factory install to a new directory, run the uninstaller, setup a new shortcut to the new location of the Star Trek Launcher I do not have any more messages about conecting to char server, or and hanging. I have logged out 10 times in a row to test this and it does work for me.
If this issues is seemingly enough plauging the Windows 7 users, then it is a permissions failure is what it seems like. Running the file as Administrator made no difference at all.
Just something I do test things... and this one works for me.