Yes , I tried the Vista recovery program and repair failed I did all the hard drive tests you describe before and based on the results and talking to other people concluded the HDD was bad so I replaced with same manufacturer and model although it has more storage capacity. The OEM ‘tattoo’ thing is interesting as I was suspecting something like this. I noticed in my research that a similar message to the one in my first post occurs for IT people who are trying to deploy Windows 7 on a network except the component named is [Microsoft-Windows-Shell Set Up].