Bad sectors can be a nightmare.
Get a new drive, get a free drive cloning tool and clone your drive to the new one. Keep the old bad one just in case you need another image of it.
Have chkdsk try to repair any errors it finds, it will try to read and move data out of the bad sectors.
Then once on the new drive and no more bad sectors we can try to do some repairs and see if Windows will come back up. Depends what was lost on those bad sectors. But since you have a reg backup you should be able to get it back up and going.
Shane
I added this for reference;
Ok, after an online support session with a tech from Reimage.com, I was finally able to perform an 'InPlace Upgrade'. Basically he went through the same steps I had, including CheckSUR and sfc /scannow.
He did download and run a couple of tests with a tool from 'Tweaking.com' (Windows Repair - All in One). Step 1 advises the use of common anti-malware tools (e.g. MalwareBytes, etc.). Step 2 simply restarts the machine with a pending 'scandsk'. Step 3 runs 'sfc /scannow'. Step 4 creates a restore point. Step 5 performs some type of 'Repair', which appeared to reset permissions in the registry, files and folders. So, steps 1-4 were redundant with what I had already tried. After running step 5, we were still getting the same error.
Then he renamed %Windows%\SoftwareDistribution' to 'SoftwareDistribution.old'. That still didn't resolve the error.
But, after the end of the support session, I was able to run an 'InPlace Upgrade'--a major difference in behavior. It finished without any errors, and the machine appears to be back to a clean install, without having to reinstall from scratch.
I'm going to do a little research on the risks/benefits of the renamed folder. But, of everything I tried, that seemed to do the trick. If that doesn't work for you, then try step 5 of the 'Tweaking.com' utility as well.
http://www.tomshardware.co.uk/forum/31911-63-0x80073712-error_sxs_component_store_corrupt-windows-ultimate