Interactive logon process initialization has failed

I have a PC that dual boots both XP and 7. Yesterday, I restarted my computer to go from 7 to XP to play a game, all fine and dandy so far. When I came back onto windows 7, the Windows intro logo loads, disappears as usual, but instead of loading by desktop, I get :
"Interactive logon process initialization has failed. Please consult the event log for more details."
So I decided to go check my event log. I booted on XP, went to
G:\Windows\System32\winevt\Logs, copied the file : Application.evtx to my USB key, and opened it up on another Win 7 system to check it out. I thought I could find the error, but I can't get any logs out of the event log. The last entry being a month ago for some reason.

I want to avoid formatting my Win 7 partition at all costs, so this is my last resort, countless hours of searching on google has given me nothing. I find this frustrating, as I am not a 'noob' with computers, I usually fix other people's problems, but this one just has me stunned.

Also :
Safe mode doesn't work
System restore doesn't work
System repair doesn't work.
Nothing works.
I've tried almost everything so far.

Please keep in mind that I do in fact have complete access to my G: partition, which is my Win7 partition.

Thank you very much, +9000 internets to the person who can help me solve this.

Jonathan_King said:

Welcome!

Have you tried a Startup Repair?

You can also try logging into the built-in Administrator account in Safe Mode. You may have a corrupted user profile.

If you can log into that account, you can create a new account.

Nope, as I stated, I cannot boot into safe mode either. I get the same problem.

Yes I have. It detects no problem.

Nope. Nothing of the sort.

Very unfortunate.