Well, Windows can't find the sysmain.dll file (unfortunately). There are two options:

1) If it is a new install and you have little loaded you can reinstall, which shouldn't take too long with Win7.
2) Work through the problem and hope it helps (that sounds promising, doesn't it?).

If you want to work through the problem you'll need to do the following:
1) Make sure you have a file named sysmain.dll in C:system32 (c:windowssystem32sysmain.dll)
If the file isn't there you will have to extract it from the Win7 DVD.
2) Type regedit.exe into the Start Menu and open the registry editor.
3) Navigate to HKEY_LOCAL_MACHINESYSTEMCurrentControlSetservicesSysMain.
4) This part is a little hard to describe, but you are looking to see if the global variables are correct in the key. In this case
the variable will be %systemroot% which tells Windows that the file will be found in the default folder that Windows was
installed in (C:windows in this case).
There will be many instances of this in both the SysMain key and the Parameters sub-key. Some may have other characters in front, but you are only concerned with the "%" and the characters between. If there is a mis-spelling you'll need to correct it. I'll post some screenshots when I get back to a Win7 machine...

OK, here is SysMain
[attachment=1:1wbbssq5]SysMain.jpg[/attachment:1wbbssq5]

Here is SysMain_Parameters
[attachment=0:1wbbssq5]SysMain_Parameters.jpg[/attachment:1wbbssq5]