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Windows 7 Startup Failed to initial Environment Error

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I found the error, it's the service Windows Event Log by Microsoft.

I opened msconfig.exe --> services tab and first de-activated all non-Microsoft services and rebooted, error still happened.
Then I did the opposite, deactivated all Microsoft services (no error), and then I activated them in bulk of 5 services, when I found the block of 5 services that caused the error, I activated all services except those 5, did a reboot, no error. After that I activated one after the next service until I had the one deactivated that caused the error.

Now my next question is, how important is the Windows Event Log Services. Should I fix the error and try to reinstall Windows Event Log (if so how?) or can I leave it deactivated?
 
maximillion82, I was getting this same message. It was caused by ASUS AI Suite II. When I uninstalled it, the error stopped. Give it a shot. Let me know if it worked.
 
Had this error message after getting a bit too enthusiastic doing some junk file clean-ups today, and noticed an icon labelled "MFC" associated with the error message in the task bar. A bit more info appears to have come to hand since maximillion82 originally posted this problem in that the MFC icon is in fact " ASUS Easy Update(r) MFC" .... Going to Start, All Programs, ASUS folder, and uninstalling the updater fixed my problem. It is then up to the user to decide if he wants to re-install it or not.
 
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