Windows failed to conect to " system event notification service"

My computer recently started having issues........ here is what is going on:
* boot computer
* Windows boot screen displayed ~ 1 minute
* screen goes black. Can move mouse. Drive light constantly on, not blinking. ~ 5 minutes
* log in screen comes up / log in
* Desktop loads ~ 1 minute
> sometimes it loads with regular windows aero theme other times it loads with basic windows classic theme.
* Error message pop up "failed to connect to System event notification service"
* Have to wait for about 5 more minutes before computer is actually usable
* The audio service does not work as well...
from when I press the power button to when I can actually use my computer takes 10 - 15 minutes.

Here is what I have tried so far
*Turning off all start up programs / services
*Tested Memory - passed
*Hard Drive Self Test ---- # 1 - 7 fail / I am guessing that this is the source of the problem, however my computer does still work once everything is finally booted. So I don't know what to do with that information or if that test even matters.
* I have tried looking at the event viewer but every time it says that the event log service is unavailable.
> I try turning on Windows Event Log but that does not change anything
* tried "netsh winsock reset" in command prompt, based on a different thread that I found - it didn't work


64bit Windows 7 untimate, clean install from usb iso (post resolution to bootsect.exe issue), running on dell poweredge sc430,
"No Audio Output Device is installed" hardware issue!!!!
Win 7 has never detected or installed drivers for Ensoniq es1370 sound card
Specs below:
OS Name Microsoft Windows 7 Ultimate
Version 6.1.7601 Service Pack 1 Build 7601
Other OS Description Not Available
OS Manufacturer Microsoft Corporation
System Name ****************
System Manufacturer Dell Inc.
System Model PowerEdge SC430
System Type x64-based PC
Processor Intel(R) Pentium(R) 4 CPU 2.80GHz, 2793 Mhz, 1 Core(s), 2 Logical Processor(s)
BIOS Version/Date Dell Inc. A04, 10/6/2006
SMBIOS Version 2.3
Windows Directory C:\Windows
System Directory C:\Windows\system32
Boot Device \Device\HarddiskVolume3
Locale United States
Hardware Abstraction Layer Version = "6.1.7601.17514"
User Name ***********************************
Time Zone Pacific Daylight Time
Installed Physical Memory (RAM) 1.00 GB
Total Physical Memory 1.00 GB
Available Physical Memory 317 MB
Total Virtual Memory 2.00 GB
Available Virtual Memory 1.00 GB
Page File Space 1.00 GB
Page File C:\pagefile.sys
Cant seem to find any info on sevenforums, or microsoft technet or cnet, or WELL..... Any where!!
Microsoft fix.it no problems detected!
Please any help greatly appreciated!