The SP1 is downloaded and restart the system. It continues with stage one of the two but for some reason the process of "time out" and invested. Windows 7 then start to undo all that had downloaded. I believe this is where W7 uninstalled all or part of the SQMAPI.dll or spoiled. As the only application that was uninstalled was the Service Pack 1 itself, re-install the Service Pack 1 to download the Service Pack 1 is impossible. I rebooted several times, turn off all antivirus, clean any debris as possible and continues to fail W7 SP1. Again, I think the problem is created when SP1 has timed out and uninstalled.