SOLVED: The file or folder is corrupted and unreadable.

On a Windows 7 Pro workstation, whenever a user logs in, they receive an error that the file C:\Windows\System32\en-us\winlogon.exe.mui is missing or corrupted. Every normal restart of Windows automatically invokes chkdsk c: /f. I've tried the
following:
Run chkdsk c: /f /r. The first run found several soft problems, but no physical problems with the drive. A subsequent run found no problems.
Checking the memory. A bad stick was found and replaced. A re-run of the memory diagnostic with the new memory returns no errors. I believe that the problem was caused by the bad memory.
Run sfc /scannow. The CBS.log reveals that there are problems that can't be fixed.
An upgrade re-installation of the OS. It fails saying that there are problems on the disk.
Upon investigation, the file winlogon.exe.mui is missing, but there is now a subfolder by that name in C:\Windows\System32\en-us. That folder is not normal and, as far as I know, shouldn't exist. The folder cannot be deleted or renamed. All attempts to do
so fail with an error that "the file or folder is corrupt". Attempts to copy the file obtained from another computer also fail with the same error.
Every normal restart of Windows automatically invokes chkdsk c: /f, but no errors are reported. I've even tried booting from a USB-based OS and running chkdsk on the drive, but no errors are reported, although the error persists.
Before I reformat the drive and start from scratch (it's a custom workstation that will take more than a day to rebuild), I thought I'd ask if anyone has any ideas about what I can do. I'll be grateful for any suggestions.

Hi David,
Thank you for sharing your solutions and experience here. It will be very beneficial for other community members who have similar questions.
Karen Hu
TechNet Community Support

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