windows "hour glass" seems to be in a loop & can't click on any icons

cbs logs are really not my thing I have asked some other members to have a look
FWIW your log looks very short and does not show any errors, while we are waiting may be worth running another one and posting the results

try C:\Windows\Log\CBS\CBS.log
You will prob have to copy to desktop and zip it up to upload

copy and paste it to the desktop first

SFC crashed out with the following error...

Code:

2014-12-08 23:26:51, Info                  CSI    00000057 [SR] Beginning Verify and Repair transaction
2014-12-08 23:26:54, Error                 CSI    00000058 (F) STATUS_OBJECT_NAME_NOT_FOUND #1205549# from Windows::Rtl::SystemImplementation::DirectFileSystemProvider::SysCreateFile(flags = (AllowSharingViolation), handle = {provider=NULL, handle=0}, da = (SYNCHRONIZE|FILE_READ_ATTRIBUTES), oa = @0xbcc980->OBJECT_ATTRIBUTES {s:48; rd:NULL; on:[118]"\??\C:\Windows\WinSxS\amd64_microsoft-windows-console.resources_31bf3856ad364e35_6.1.7600.16385_en-us_da1674175c00c52f"; a:(OBJ_CASE_INSENSITIVE)}, iosb = @0xbcc960, as = (null), fa = 0, sa = (FILE_SHARE_READ|FILE_SHARE_WRITE|FILE_SHARE_DELETE), cd = FILE_OPEN, co = (FILE_SYNCHRONOUS_IO_NONALERT|0x00004000), eab = NULL, eal = 0, disp = Invalid)
[gle=0xd0000034]
2014-12-08 23:26:54, Error                 CSI    00000059@2014/12/8:19:26:54.379 (F) d:\win7sp1_gdr\base\wcp\sil\merged\ntu\ntsystem.cpp(2057): Error STATUS_OBJECT_NAME_NOT_FOUND originated in function Windows::Rtl::SystemImplementation::DirectFileSystemProvider::SysCreateFile expression: (null)
[gle=0x80004005]
2014-12-08 23:26:54, Error                 CSI    0000005a (F) STATUS_OBJECT_NAME_NOT_FOUND #1205548# from Windows::Rtl::SystemImplementation::CDirectory::OpenExistingDirectory(...)[gle=0xd0000034]
2014-12-08 23:26:54, Error                 CSI    0000005b (F) STATUS_OBJECT_NAME_NOT_FOUND #1205547# from Windows::Rtl::SystemImplementation::CDirectory_IRtlDirectoryTearoff::OpenExistingDirectory(flags = 0, da = (SYNCHRONIZE), oa = @0xbcd278->SIL_OBJECT_ATTRIBUTES {s:40; on:"amd64_microsoft-windows-console.resources_31bf3856ad364e35_6.1.7600.16385_en-us_da1674175c00c52f"; a:(OBJ_CASE_INSENSITIVE)}, sa = (FILE_SHARE_READ|FILE_SHARE_WRITE|FILE_SHARE_DELETE), oo = (FILE_DIRECTORY_FILE|FILE_SYNCHRONOUS_IO_NONALERT|FILE_OPEN_FOR_BACKUP_INTENT), dir = NULL, disp = Invalid)
[gle=0xd0000034]

It looks to me as if replacing the file/folder should work - I'll post a fix protocol later

Hmm - thinking about it, it occurs to me that this may be a problem that CHKDSK could fix (at least partially) - please follow these instructions...

Please run a full CHKDSK and SFC scan....
Click on Start > All Programs > Accessories
Right-click on the Command Prompt entry
Select Run as Administrator and accept the UAC prompt - the Elevated Command Prompt window should pop up.
At the Command prompt, type
CHKDSK C: /R
and hit the Enter key.
You will be told that the drive is locked, and the CHKDSK will run at the next boot - hit the Y key, and then reboot.
The CHKDSK will take a few hours depending on the size of the drive, so be patient!
After the CHKDSK has run, Windows should boot normally (possibly after a second auto-reboot) - then run the SFC.

SFC -System File Checker - Instructions
Click on Start > All Programs > Accessories
Right-click on the Command Prompt entry
Select Run as Administrator and accept the UAC prompt - the Elevated Command Prompt window should pop up.
At the Command prompt, type
SFC /SCANNOW
and hit the Enter key
Wait for the scan to finish - make a note of any error messages - and then reboot.

Upload the CBS.log file (compressed, please!) to your reply