Did that already. Here is the result:
Ran SFC From the Win 7 install CD - "C:\>SFC /scannow /offbootdir=c:\ /offwindir=c:\windows\"
"Windows Resource Protection found corrupt files but was unable to fix some of them. See the
CBS.log file"
This are the entries in that CBS log file:
2009-08-30 22:19:38, Info CBS Starting TrustedInstaller initialization.
2009-08-30 22:19:38, Info CBS Transactions disabled in registry, continuing without transaction support.
2009-08-30 22:19:38, Info CBS Kernel transactions are disabled, continuing without transaction support.
2009-08-30 22:19:38, Info CBS Loaded Servicing Stack v6.1.7100.0 with Core: X:\windows\winsxs\x86_microsoft-windows-servicingstack_31bf3856ad364e35_6.1.7100.0_none_7a5259aa1c604bad\cbscore.dll
2009-08-30 22:19:38, Info CSI 00000001@2009/8/31:06:19:38.731 WcpInitialize (wcp.dll version 0.0.0.6) called (stack @0x7365d92e @0x73d950d2 @0x73d715c4 @0x301c99 @0x301236 @0x76f375a8)
2009-08-30 22:19:38, Info CSI 00000002@2009/8/31:06:19:38.763 WcpInitialize (wcp.dll version 0.0.0.6) called (stack @0x7365d92e @0x73dd5a32 @0x73dd28c2 @0x301c99 @0x301236 @0x76f375a8)
2009-08-30 22:19:38, Info CSI 00000003@2009/8/31:06:19:38.778 WcpInitialize (wcp.dll version 0.0.0.6) called (stack @0x7365d92e @0x73d14b68 @0x73d15461 @0x301327 @0x301245 @0x76f375a8)
2009-08-30 22:19:38, Info CBS Failed to load SxsStore.dll [HRESULT = 0x8007007e - ERROR_MOD_NOT_FOUND]
2009-08-30 22:19:38, Info CBS Failed to initialize SxS. [HRESULT = 0x8007007e - ERROR_MOD_NOT_FOUND]
2009-08-30 22:19:38, Info CBS Ending TrustedInstaller initialization.
2009-08-30 22:19:38, Info CBS Starting the TrustedInstaller main loop.
2009-08-30 22:19:38, Info CBS TrustedInstaller service starts successfully.
2009-08-30 22:19:38, Info CBS SQM: Initializing online with Windows opt-in: False
2009-08-30 22:19:38, Info CBS SQM: Cleaning up report files older than 10 days.
2009-08-30 22:19:38, Info CBS SQM: Requesting upload of all unsent reports.
2009-08-30 22:19:38, Info CBS SQM: Failed to start upload with file pattern: X:\windows\servicing\sqm\*_std.sqm, flags: 0x2 [HRESULT = 0x8007007f - ERROR_PROC_NOT_FOUND]
2009-08-30 22:19:38, Info CBS SQM: Failed to start standard sample upload. [HRESULT = 0x8007007f - ERROR_PROC_NOT_FOUND]
2009-08-30 22:19:38, Info CBS SQM: Failed to start upload with file pattern: X:\windows\servicing\sqm\*_all.sqm, flags: 0x6 [HRESULT = 0x8007007f - ERROR_PROC_NOT_FOUND]
2009-08-30 22:19:38, Info CBS SQM: Failed to start always sample upload. [HRESULT = 0x8007007f - ERROR_PROC_NOT_FOUND]
2009-08-30 22:19:38, Info CBS SQM: Warning: Failed to upload all unsent reports. [HRESULT = 0x8007007f - ERROR_PROC_NOT_FOUND]
2009-08-30 22:19:38, Info CBS Setup in progress, aborting startup processing checks.
2009-08-30 22:19:38, Info CBS Startup processing thread terminated normally
2009-08-30 22:19:38, Info CSI 00000004 CSI Store 5575472 (0x00551330) initialized
2009-08-30 22:19:38, Info CSI 00000005 Transaction merge required, do-not-merge flag passed.
2009-08-30 22:29:47, Info CBS Reboot mark refs incremented to: 1
2009-08-30 22:29:47, Info CBS Scavenge: Starts
2009-08-30 22:29:47, Info CSI 00000006 Transaction merge required, do-not-merge flag passed.
2009-08-30 22:29:47, Info CSI 00000007@2009/8/31:06:29:47.320 CSI Transaction @0x5a0598 initialized for deployment engine {d16d444c-56d8-11d5-882d-0080c847b195} with flags 00000002 and client id [10]"TI6.0_0:0/"
2009-08-30 22:29:47, Info CBS Scavenge: Begin CSI Store
2009-08-30 22:29:47, Info CSI 00000008 Transaction merge required, do-not-merge flag passed.
2009-08-30 22:29:47, Info CBS Scavenge: Could not scavenge with pending transaction, disposition: 0X5
2009-08-30 22:29:47, Info CSI 00000009@2009/8/31:06:29:47.320 CSI Transaction @0x5a0598 destroyed
2009-08-30 22:29:47, Info CBS Reboot mark refs: 0
2009-08-30 22:29:47, Info CBS Idle processing thread terminated normally
2009-08-30 22:29:47, Info CBS Ending the TrustedInstaller main loop.
2009-08-30 22:29:47, Info CBS Starting TrustedInstaller finalization.
2009-08-30 22:29:47, Info CBS Ending TrustedInstaller finalization.