What I did to fix the Initializing VFS hang that causes SL to stop responding. (Windows Fix)
Unistall Viewer 2 -> Search Files/folders for the folder named AppData -> Enter that folder and find all folders named Second Life -> Delete ONLY THOSE FOLDERS -> Reinstall Viewer 2 -> Resume time sink.
This worked for me and may or may not work for anyone else, but I don't see why it wouldn't.
Also, Viewer 1.2xx works fine while viewer 2 has the VFS issue.