Cygwin 3.0.1-1 Breaks ALL cygwin applications on Windows 7 x64

[Jerry Baker via cygwin]

I have a large installation of cygwin on Windows 7 x64 for the last 
decade that has been working without issue. When I use setup-x86_64.exe 
(2.895) to upgrade the cygwin 2.11.2-1 package to cygwin 3.0.1-1, all of 
my cygwin applications stop working. Simply executing a command (such as 
'bash' or 'grep' or 'date') at a command line just yields a blinking 
cursor that never returns anything. As soon as I switch back to version 
2.11.2-1 everything works again.

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