Windows 7 won't reboot (Error 0xc00000e9) and can't enter Safe Mode?

My brother's 2 years old Asus Eee PC 1000HD, which runs on Windows 7, crashed one day ago after a Windows 7 update (sadly, he doesn't remember which update it was ). When reboot it goes to "Windows Boot Manager" with the ff message:

"Windows has encountered a problem communicating with a device connected to your computer.
This error can be caused by unplugging a removable storage device such as an external USB drive....

File: \Boot\BCD
Status: 0xc00000e9
Info: An unexpected I/O error has occurred. "


I detached everything that is connected to his notebook and restarted it, but I got the same error.

I tried to enter Safe Mode by pressing F8 during start-up, but nothing happened; it won't enter safe mode. I tried pressing other keys, but the only key that works is F2, which enters the BIOS SETUP UTILITY.

Another problem is that the notebook only came with "Eee PC Supprt DVD Rev.1.0" CD that only runs in XP, so when I tried to run it when I restart his computer, it did not work. I don't have a Windows 7 recovery disk because we got his notebook on Ebay.

Is there any hope for his computer? Also I am a novice on computers, so please help. Thank you all in advance. :)

Run Startup Repair