Boot critical files are compressed. In order to fix this, boot the Windows 7 Repair CD or install DVD, select "Repair My Computer," on System Recovery Options click "Load
Drivers," then OK, now when the mini-explorer opens up, click on Computer, then rightclick on Windows 7 drive, choose Properties, untick the box for compressing files on the drive. Click Apply, back out of the Repair console, Windows 7 should start on Reboot.
System Repair Disc - Create