1) Use the vista DVD to go to the repair mode.
2) From the same screen where you do the system restore, there's an option to open an administrative command prompt.
3) That should open in X:\Sources or something like that
4) Go to the windows drive by entering C:
5) Now go to the windows event log folder on your machine (C:\Windows\System32\winevt):
6) ren Logs Logs_bad
7) mkdir Logs
This will create an empty folder for new event logs.
Restart the system and cross fingers.