OK Bare Foot and alphanumeric --
FYI...you were not on the right track. The correct short answer is "corrupted files." Here is what happened. On another thread, I read that IIS 7.5 would not install if an application that uses IIS 7.5 is installed first. Apparently there have been two instances plus mine. So I first un-installed a broker/dealer program that uses IIS 7.5, MS.NET Framework 4 and MS SQL Server 2008. Still no luck with installing IIS 7.5. Next I ran Windows 7 Upgrade from my original installation disk (I did not know you could Upgrade the Ultimate Version :=)) Apparently it is also a repair). One of the last Upgrade Screens told me MS.NET Framework 4 and MS SQL Server 2005 (used by Windows Live) were defective and required a repair. Finally, I had a "clean" Upgrade/re-install. The first thing I tried was to activate IIS 7.5 via Control Panel > Programs and Features (the alphanumeric way). This time IIS 7.5 installed correctly. Next, I need to re-install Windows Live and the broker/dealer program, but I think everything will work just fine.
Thanks for your input. Every little bit helps.
Also..............FYI According to the folks at Microsoft, Windows 7 Ultimate N can't be upgraded to a "no N version." However, when you install Windows Media Center (a free download), Ultimate N works just like the real thing.