This is a 5 min solution to this problem. I worked on this for 3 days and was about to either buy an upgraded new computer and drives or another copy of Windows 7 Ultimate. I searched all over and made many changes that did not work. I finally found a definite solution.

NOW THIS IS THE SOLUTION. My Digital Life Forums...

Visit this and read until you find the download link. The little program is called "removeWAT". You may have to go to several places to find it because Microsoft keeps harrassing the hosting companies for hosting this solution. But as of this time, this link is still working. I did not have any problems with malware but I would rather have malware that I can remove than put up with the Microsoft BS.

I think you need to be sure to deactivate automatic windows updates too, because I have not verified that once you do an update that Microsoft will not replace to deleted or blocked or renamed files. Never agree to requests to install microsoft genuine advantage.

After this program was installed, it took only 2-3 minutes and a reboot to do the necessary fix and it was all automatic. No digging through the registry or typing one line after another in an elevated command prompt.

THIS IS THE REAL DEAL SOLUTION. PLEASE HELP ALL THE OTHER FRUSTRATED PEOPLE WITH THIS PROBLEM BY POSTING THIS ANSWER IN OTHER LOCATIONS.
You can probably get it off many of the warez or hack sites, but you are more likely to get some malware from those location.

Good luck and start smiling again.. I am one happy camper now!