Hi all,
the SubInACL was an interesting experience but did not solve the problem in my case. My error 1935 came also with a HRESULT 0x8007054F (internal error). The cbs.log contained some transaction related errors, like e.g. the following:
CSI 00000019 Pending transaction content must be resolved, cannot begin another transaction yet
CSI 0000001a (F) E_UNEXPECTED #1393# from Windows::COM::CComponentStore::InternalTransact(...)[gle=0x8000ffff]
SXS Transact2 sensing pending content failed with 0x8000ffff
etc.
Finally, I found the solution to my flavor of the problem in the following thread:
I post this because it might save other people from spending too much time on this issue or even messing up their system. I have also read in some locations that people resorted to perform an update install of Windows 7.
Cheers, Remigius.