I am having an issue with Acrobat XI that I have also seen with Acrobat X and Reader XI and Reader X. I have also found another discussion that I believe is related. I believe this is a bug in Acrobat, but I don't know how to go about getting it fixed.
In my case, the "Internal Error Occurred" error pops up (usually behind the other windows, making the system seem hung) when users click on a PDF in Windows Explorer (especially if the preview pane is enabled). The same error pops up if a user clicks on a PDF attachment in Outlook and enables preview.
I have used procmon to see what is happening when the error is triggered, and it appears that Adobe software tries to access the user profile incorrectly.
The discussion I refer to where another user gets the same error more often / in a worse way (but I believe for the same reason) can be seen here:
http://forums.adobe.com/message/4344860
I believe it is the same issue because the user (LaneCx) says "The only thing that could be considered out of the ordinary is that the C:\users folder is a separate mounted drive." This is in the post dated