Directx Setup An internal system error occurred...

PROBLEM:

I am getting the following error message..."DirectX Setup: An internal system error occurred. Please refer to DXError.log and DirectX.log in your Windows folder to determine problem." when trying to install ANY (version 9 and higher) version of DirectX using the web directx installer or full installer. Please click to view these two logs DXError.log and DirectX.log.

REASON:

The reason why I am trying to install directX is because I am trying to play a game, "Dead Island," which apparently requires DirectX 9.0c for the sound to work correctly and either my DirectX 9.0c is missing files or is damaged and needs to be repaired/reinstalled. Regardless of if Dead Island requires DirectX 9.0c or not but its the fact that I cannot get directx to even install or repair itself without the error above.

SUMMARY:

It appears that it does not matter what version of DirectX I try to install the ending result is the error message stated above. This involves DirectX 11, 10 and 9 and have tried the directx web installer as well as full installers again with the same result. I have searched and searched in this forum and google searched and have found various posts with the same problem with different fixes the majority claiming that their antivirus was the cause. Current version of DirectX stated by DXDIAG is version 11.

I apologize if there are several posts like this one but I assume that these DirectX errors are unique to each problem thus a new post needs to be made for each error even though the error message clearly is identical the DirectX error logs may not be.

STEPS THAT HAVE BEEN TAKEN:

1. I went the protection software route and uninstalled all traces of antivirus/spyware and 3rd party firewalls (which consisted of Avast and Threatfire) and problem persists. Reinstalling the OS is never my thing as I would like to learn how to fix the problem now in case this problem happens again.

2. I have tried system restores as far back as a couple months and problem persists.

3. Tried System File Checker (SFC /scannow) and it found problems which stated some were fixed and some could not be fixed. Please see log. (50MB)

4. Ran scans using several different antivirus softwares like Spybot, Malwarebyte, Avast, Threatfire and the list goes on...and no infections were found and to my knowledge I have never been infected.

5. Tried "Microsoft Fix It Center Beta" and had it scan and fix everything it could find, which was not much, and problem persists.

6. SP1 is installed and all updates are currently up to date.

SPECS:

I am running Windows 7 64bit Ultimate edition.

CONCLUSION:

I would like to see this problem get fixed and am willing to try practically anything except taking the easy route and reinstalling the OS so please don't state to do so. This currently is a minor problem but could be a major problem if a new version of DirectX is later released and would be unable to install it because of the obvious problem. I am looking for any advice, known solutions or helpful facts regarding my problem.

I look forward to some answers. =)