There seems to be a fight going on between VSS, NSSDK.MfpifValidator.1, and NSSDK.CprMfpif.1 to decide which gets more error entries in the Application logs.
MSE appears to be having problems updating.
There appear to be bad blocks present in one of your disks - but CHKDSK says not the C: drive (any ide which one \Device\Harddisk1\DR4 is?). Looking at the log, it may be an external drive, as it disappears on 29/12
From what little I understand in the logs, a common facter appears to be a stall ShellHWDetection Service
let's see if we can find out if anything is wrong with its settings.....
Open an elevated Command Prompt, and run the following commands....
NET START ShellHWDetection SC QC ShellHWDetection SC QUERYEX ShellHWDetection SC SDSHOW ShellHWDetection SC QPRIVS ShellHWDetection
post the results.
Here are some instructions to make life easier
1) To open an Elevated Command Prompt Window (the ECP window), click on Start, All Programs, Accessories – then right-click on Command Prompt, and select Run as Administrator. Accept the UAC prompt. 2) To run the commands easier, highlight the block of commands, and right-click on the highlight – select Copy. In the CP Window, click on the black/white icon at top left – select Paste. The commands will run but may not complete the last command, so hit the Enter Key once. 3) To copy the results... click on the Black/White icon in the top left, and select Edit... 'Select All', and hit the Enter key - then use Ctrl+V or r-click+Paste to paste it into your response.