Windows Anytime Upgrade couldn't create a restore point??

I have done thorough research and googled this issue many times but non of the resolutions actually apply to me and never solve my issue. I bought a windows 7 64 bit key but every time i run Windows Anytime Upgrade i get this message and at the bottom it says turn on system restore for the disk that contains your windows installation, it is on but i am unable to create a restore point because i then get this error 'An error was detected in the volume shadow copy service (vss). The problem occurred while trying to contact VSS writers. Verify that the event system and the VSS service are running (which they definitely are, they're both running and startup is automatic) and check for associated errors in the event logs. (0x80042318)

When you access System Protection to look at the drives, are any listed as "Recovered?"

If so turn off System Protection on that drive, then turn it back on for C which should now be protected.

None of the drives were listed as recovered...

Next run SFC /SCANNOW Command to check System File integrity.

Check also the logs given in Troubleshooting Steps for Windows 7
for repeat errors to resolve, utilize System Resources also given, establish a Clean Boot.

Ok im getting this message and have no idea what to do, btw did i tell you that i have recently had to do a full format of the c: drive and reinstall windows again through acer's reinstall utility, would this have something to do with the issue??

btw heres the log...Attachment 246313 and im still getting the same error message for WAU as i posted in my second post (last image)....

Next run a full scan with Malwarebytes, uninstall your AV and replace with Microsoft Security Essentials to run a full scan. If you're running a bloatware AV make sure you google for it's removal tool - these are themselves like infections.

Run SFC /scannow again several more times to see if it can repair the damaged system files.

If not run Repair Install.

ok will do man :)

ok installed malwarebytes deleted 2 files... the more sfc /scannow operations i run - the better or the more chance of any repairs?? or should i completely install windows again? :/

If SFC won't repair files in 3 passes then as I just advise run a Repair Install which may or may not resolve your issue.

If you want to get the freshest start you can Clean Reinstall - Factory OEM Windows 7
which steps to get a perfect reinstall are the same for retail.