ummmm...yea, well, I owe Microsoft and any help here an apology. After countless reboots and reimaging nothing worked so I elected to go back to Vista. However, wouldn't you know it the issue persisted so I knew it wasn't the OS since Vista has worked fine for many years.
I still don't have any kind of specific answer of what was causing the issue, but it was certainly hardware related. Once I manually pressed the power button and reset button a few times I went back to try to have the PC shut down and did. I've done a couple of tries since then and it seems to power down just fine. Adding to the complexity this is a HTPC that sits in a rack in another room about 35 feet from my home theater. Installed in it is an IR Receiver which turns the PC on manually. It is designed to do just this and has worked perfectly for many years. There really isn't any explanation why this issue coincided with my Windows 7 install, but I've pretty much concluded it was either in the power button, the reset button, something on the motherboard, or the IR receiver that turns on the computer. At least it is working again. Now I just have the trouble of many hours of configuring it all.
Sorry for the trouble.