Mac OS 10.7.3 Reboot Issues

Everytime my wife reboots her 1st gen macbook air the following happens:

1. System Preference panel opens and the sharing tab shows up every single time even though she un-checks the "reopen windows when logging back in" box.
2. Wallpaper is reset to the default (galaxy) one and the photo that was used for the wallpaper is now gone from the desktop & screen saver settings tab. She has to find it separately and set it as the wallpaper every time. This holds true even if she changes the wallpaper to a stock Mac OS X one.
3. MS Word starts and it always opens the same file
4. MS Excel starts and it always opens the same file
5. MS Outlook starts even though she has never used it since installation
6. Chrome browser starts without logging onto her gmail account but somehow the bookmarks are reset as if it has just logged on and synced with gmail.

It looks as if her macbook air performs a system recovery everytime she reboots. What is going on with my wife's macbook air? This is the strangest thing that I have ever seen. Any input will be appreciated! Thanks!

Part of the problem may be with the way Lion "saves" your sessions. Have her do this: Open System Preferences, click on the "General" tab. Now remove the check from the box that says "Restore windows when quitting and re-opening apps". Reboot.

Didn't work at all. It rechecks itself after I reopen the systems preference tab after closing it every time. Even if I lock the settings after unchecking, it rechecks itself. The problem persisted after I upgraded to 10.7.4.

That was fixed with the update to Lion (10.7.4). The box now remains unchecked on both of my machines running the latest update of Lion.

The problem persisted as I have stated in my earlier reply. Upgrading to 10.7.4 didn't help at all.