BSOD after Windows Update on Thinkpad T60

[IceMan28]

I have a Thinkpad T60 2007-4AU with Windows 7 Ultimate running on a flash drive, I used WinToUSB to install it, anyways all is well until Windows Update installed updates for a 3rd time.
Here is a screenshot of updates before I installed, this same thing happened before and I had to reinstall so I was prepared this time to catch the updates that were the culprit:

After those updates installed it rebooted and BAM! BSOD

It will not boot into Safe Mode at all, gives same BSOD, cannot do System Restore from Install disk, gives an unexpected error 0x80070057

 

[axe0]

Hi IceMan28,

Welcome to the 7forums.

Do you have recovery media?

 

[IceMan28]

I have a Windows 7 Install disc. tried system restore but it gives unexpected error 0x80070057 and I saved an Image of the system on my other laptop through the network.

 

[axe0]

Please go to the advanced recovery options and open command prompt.
In command prompt, try following below.

Diagnostics Test

 System File Check

Please try following:

• Open an admin command prompt
• Copy/paste "sfc/scannow" (without quotes) and press enter
• When it finished reboot your system
• Open again an admin command prompt
• Enter sfc/scannow again

If sfc/scannow does NOT say "Windows Resource Protection did not find any integrity violation", please upload the cbs.log file located at {windows partition}\Windows\Logs\CBS\, if the file is too large try a 3rd party uploader like dropbox, onedrive, google drive, mediafire etc.
System File Check(SFC a.k.a. Windows Resource Protection) needs to have your system rebooted in order for sfc to try to fix the problems that it finds.

   Note

I am not very familiair with the troubleshooting options from Windows 7, it is possible that the command prompt is somewhere else then I have written

 

[IceMan28]

Output is "There is a system repair pending which requires a reboot to complete. Restart Windows and run sfc again." I did that 3 times and got the same thing. I attached a log from where it mentions above. CBS.log

 

[axe0]

Please run sfc, reboot, sfc a few more times.
There is a lot going on, although it is quite beyond my understanding my guess is that it is not yet finished.