[Win7SP1] Win.Update doesn't update (infinite Restart loop uncorrected and persists)

[ubershin]

Figured out I do indeed have SP1 in the original CD.

 

[BrianDrab]

Figured out I do indeed have SP1 in the original CD.

Excellent. Very few people are that lucky. At this point I suggest a repair install since you have the CD. All of your data and programs will remain intact. Just make sure you have a backup of any critical data in case something does go wrong. Unlikely but always possible.

You can follow detailed instructions at the following link. Please let me know how it goes.
Repair Install - Windows 7 Help Forums