You forgot the upload the setupapi.dev.log. The setup fails due to USB driver issues:
Quote
2012-05-05 16:41:40, Info CBS Doqe: q-uninstall: Inf: usb.inf, Ranking: 2, Device-Install: 1, Key: 584, Identity: usb.inf, Culture=neutral, Type=driverUpdate, Version=6.1.7600.16788, PublicKeyToken=31bf3856ad364e35, ProcessorArchitecture=amd64, versionScope=NonSxS
2012-05-05 16:41:40, Info CBS Perf: Doqe: Uninstall started.
2012-05-05 16:41:40, Info CBS Doqe: [Forward] Uninstalling driver updates, Count 51
2012-05-05 16:41:42, Info CBS DriverUpdateUninstallUpdates failed [HRESULT = 0x80070490 - ERROR_NOT_FOUND]
2012-05-05 16:41:42, Error CBS Doqe: Failed uninstalling driver updates [HRESULT = 0x80070490 - ERROR_NOT_FOUND]
2012-05-05 16:41:42, Info CBS Failed uninstalling driver updates [HRESULT = 0x80070490 - ERROR_NOT_FOUND]
2012-05-05 16:41:42, Error CBS Startup: Failed while processing non-critical driver operations queue. [HRESULT = 0x80070490 - ERROR_NOT_FOUND]
2012-05-05 16:41:42, Info CBS Startup: Rolling back KTM, because drivers failed.
2012-05-05 16:41:42, Info CBS Setting ExecuteState key to: CbsExecuteStateStageDrivers | CbsExecuteStateFlagRollback | CbsExecuteStateFlagDriversFailed
2012-05-05 16:41:42, Info CBS Progress: UI message updated. Operation type: Service Pack. Stage: 1 out of 1. Rollback.
2012-05-05 16:41:42, Info CBS Progress: UI message updated. Operation type: Service Pack. Stage: 1 out of 1. Rollback.
this causes the rollback. Do you find the USB drivers in version 6.1.7600.16788? Try to remove this updates:
http://support.micro...b/2529073/en-us
reboot and try to install Sp1 again.