SQL Server 2008 on Windows 7 - Restart Required

An install of SQL Server 2008 on my new Windows 7 64-bit Pro setup was going great until I went to install SP1. The update check failed kept failing with Restart Required even I rebooted several times.

I decided to uninstall the 64-bit version of SQL Server and try the 32-bit version to see if the same issue is present. It may be but I couldn't even uninstall. Same error. Here how to fix:

Open Regedit.

Navigate to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Session Manager

Rename PendingFileRenameOperations to PendingFileRenameOperations2

Don't restart. Proceed with the SP1 install or uninstall.