Windows 7: Odd SFC and chkdsk behavior

I have a Dell XPS 9000 with two hard drives. The main hard drive has the OS with a recovery partition. My problems started last week when my Internet was down due to a bad storm. I decided to do some much needed maintenance including a Disk Defrag and a Chkdsk. When I rebooted the chkdsk froze a 1%. I rebooted and tried again. Same issue. I rebooted a third time and tried to cancel the chkdsk, but the keyboard did not stop the chkdsk, it just went down to 1% and froze.
Steps I have taken to fix the issue:

1 - I went into the Recovery option at the time of boot and tried to run the chkdsk with no luck. I rebooted and the chkdsk actually worked but took quite a long time - I do have a large hard drive.
2 - I tried to run the System File Checker with Administrative rights but it would stop at 1% and a say files were corrupt and mention a log file. If needed I can provide the file as I have no idea what it means.
3. I tried SFC in Safe Mode and got the same error.
4. I ran a Virus Scan and Trojan removal utility in the hopes my computer was infected but it was clean.
5. I have been searching Google to no avail looking for a solution to this issue but nothing has come up to address the issue.
6. Dell is a waste of time, they just want to run a the Recovery Option and call it a day. There must be a way to fix this.

Any ideas what I can do about this? How can I run a SFC without an installation disk, just a Recovery Partition and Recovery Disks I burned when I received the computer. I could kick myself for not having a backup routine. Thanks for your help.

Can you get into safe Mode
If so try to do a system restore from 5 days before the problem
System Restore

Yes, I tried that but the problem still exists.