Citrix Error: Event ID 1004 “faulting application XTE.exe, version”

The other day I installed the Citrix Hotfix Rollup PSE450W2K3R07 on one of our Citrix servers. Shortly after this I was alerted to an issue where sessions were disconnected, so I checked the event log and noticed the following error:

Event ID: 1004, Source: Application Error

Reporting queued error: faulting application XTE.exe, version, faulting module ntdll.dll, version 5.2.3790.4937, fault address 0x0004cd12

Event ID 1004 faulting application XTE.exe

On investigation there is an additional hotfix (PSE450R07W2K3027) available on the Citrix website to address this specific issue.