[There's a reason that Yoda is the unofficial mascot of SBS.  Size indeed matters not.] Windows needs to be restarted so necessary changes to system files can be made before continuing revised: - THE OFFICIAL BLOG OF THE SBS DIVA
Thu, Aug 27 2009 23:08 bradley

Windows needs to be restarted so necessary changes to system files can be made before continuing revised:

http://msmvps.com/blogs/bradley/archive/2009/08/18/windows-needs-to-be-restarted-so-necessary-changes-to-system-files-can-be-made-before-continuing.aspx

You remember that post?  Forget the idea that it was due to a dvd player or anything like that.   Saw it on another laptop tonight...

Someone told me to check a registry key to see if something was left behind in the pendingfilerename section...

 HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Session Manager

Bingo. 

That's what nailed me.  Now to figure out what that offending creature is, remove it and see if this time the Win7 update will occur.

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# re: Windows needs to be restarted so necessary changes to system files can be made before continuing revised:

Friday, August 28, 2009 5:18 AM by Vlad Mazek

Does Karen know you read her email?

-Vlad

# re: Windows needs to be restarted so necessary changes to system files can be made before continuing revised:

Friday, August 28, 2009 11:25 AM by bradley

Who do you think does her tech support?

# re: Windows needs to be restarted so necessary changes to system files can be made before continuing revised:

Friday, August 28, 2009 3:20 PM by Dean

Microsoft has serious bugs in the update mechanism for Win 7 and Server 2008 in that things get corrupted way too easily. It's scary and needs to be addressed by Microsoft ASAP.