Maybe this will help.
Error 0X80070005 occurs when important operating system files become misconfigured, deleted or damaged. This is a common problem with computers that don't get maintained regularly. Eventually the system becomes overloaded with problems and begins to crash and display errors.
And some links for Windows recovery.
Thanks, but that didn't help me! I guess error 0x80070005 can be several things. In my case, it came with the message "Windows was unable to create a required installation folder". Figuring that was most likely due to windows being installed via Boot Camp, that's what led me to download Apple_Win7_Upgrade_Utility.exe. When attempting to install the utility, I got the error message that it wasn't compatible with the OS. What I later found out (http://answers.microsoft.com/en-us/windows/forum/windows_7-windows_install/error -code-0x80070005-windows-was-unable-to-create/7581d2e6-8666-4104-8536-d1960165c6 1e) is that I should've kept trying to install the utility! After 3 times (I had stopped at 3 attempts previously), you get a pop-up with the option of installing using recommended settings. I did exactly that and was able to proceed with my repair installation, and then the successful installation of SP1. After a day of upgrade installations and reboots, we're up-to-date and back in business! Now hopefully that solves some/all of the crashes I've been experiencing!!!