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A couple of issues-
1-system crashes (BSOD) when I try to install SP1. Since there is no system recovery, I have to redo the whole process.

2-Windos 7 deletes my System Restore points on Windows 8. I had the same problem when I dual booted XP & Vista. There was a registry fix for this. Will it work in this situation?
For clarity, my main OS is Windows 8 with Win 7 on an external HD.