This is what I get when using the maintenance tool in the start menu on windows 7 to create a repair disc. I have yet to find a google search solution that works. I can ordinarily write to the cd/dvd drive. I've tried different discs, logging in with the hidden admin account, etc.
System repair disk could not be created.
The parameter is incorrect. (0x80070057)
This has always been a ridiculously buggy area for NT derived systems and I have always given up on their system restore/repair tools and just used Bootit NG. Have you been able to get the repair disc create to work?