I tried several combinations to restore my system because I had some critical data for certain applications that is naturally encoded (i.e. not text based) and can only be read by the app. I made a fresh copy of Windows 7 on a new disk and from that system I could access all the data from the boot damaged system. Examining the Desktop and program file folders I could determine which applications I needed to recover. Copying data from the boot damaged system to the new system is straight foward but getting the app to run required that registry keys be set. I booted from the failing system and after getting the "Starting System Services" message and then the error window "Windows cannot complete the installation, etc." message then pressing Shift F10 brings up the command window which has some limited functions available. You can access the Setup.EDL file from here, navigating to the root drive cd\ you can type in regedit to edit the registry, I used the find function under the Edit process to find any keys that pertained to the app in question. You can then right click on the key section and select export, you can name the file anything that makes sense to you but it must .reg type. I saved it to my new Windows 7 drive which was the E: drive at that point. I booted back to my good Windows 7 drive and then double clicked on the reg files I had saved after verification it will automatically enter it into your registry. Having copied the program folder and data from the damaged system to the new system it worked for me. I only needed about three apps the rest I could just simply reinstall. I hope that something here may help others if they get into this type of situation.
I bought a book entitled "Windows 7 annoyances" it was over an inch thick and somethings might be more than just an annoyance. It is a useful book to me. I left the IT field many years ago and didn't think I would have to struggle with these kinds of problems again. I skipped the Vista upgrade but I learned that Windows 7 has plenty of issues with it, I had thought that Microsoft would have remedies for Windows 7 problems such as I faced but couldn't find any that worked. Also was surprised that there was not an easy migration path from Windows XP to Windows 7 for the non technical user. If Windows 7 gets stabilized and tuned up I don't think I will be upgrading again now that I have enough memory capacity in a 64 bit. system.