Also see...
Your computer may freeze or restart to a black screen that has a "0xc0000034" error message after you install Win7 SP1... (Revised 11 March 2011)
http://support.microsoft.com/KB/975484
Why you don’t want to edit your pending.xml to resolve 0xC0000034 issue
http://blogs.technet.com/b/joscon/archive/2011/03/11/why-you-don-t-want-to-edit-your-pending-xml-to-resolve-0xc0000034-issues.aspx
Error 0xC0000034 during Service Pack 1 installations for Windows 7 and Windows 2008 R2
http://blogs.technet.com/b/joscon/archive/2011/03/09/error-0xc0000034-during-service-pack-1-installations-for-windows-7-and-windows-2008-r2.aspx
Getting out of a no boot situation after installing updates [in Win7]
http://blogs.technet.com/b/joscon/archive/2009/10/15/getting-out-of-a-no-boot-situation-after-installing-updates-on-windows-7-2008r2.aspx
~Robear Dyer (PA Bear) ~ MS MVP (IE, Mail, Security, Windows & Update Services) since 2002 ~ Disclaimer: MS MVPs neither represent nor work for Microsoft