After several days of absolute frustration, trying to fix this Error 1068 and related issues, I am overjoyed to have finally found a solution! Read further only if you are encountering Error 1068 or Error 5 AND are having trouble starting up the relevant services:
Basically my intent was to turn my laptop into a WiFi router, so I went through online tutorials which somehow didn't seem to work. When I got into troubleshooting mode, I found out that the ICS (Internet Connection Sharing) required a few services to be enabled and working properly. A couple of them were not started, so I fixed those, but then I encountered a couple of services which wouldn't start (Error 1068) even when I tried, I knew I was onto something.
1) Enable all services as advised in the "Let me fix it myself" section of this page.
If you're having trouble finding Services, go to msconfig.exe (through Start Menu search) and then go to tab "Services"
2) If you encounter a problem (such as Error 1068) while trying to enable the service "Remote Access Connection Manager" like I did, then it may actually be dependent on the service "Windows Event Log", which in my case wasn't started and refused to start manually (Error 5, if I remember correctly). To start it, first change the security/permissions on the logs folder as described on this page
3) Then make sure you reboot, then start up the service "Windows Event Log", followed by the other offending services that weren't starting earlier. Once all relevant services are running, reboot again and you should be all set.
Last but not the least, don't forget to turn on your WiFi radio before you attempt to tether!
LONG STORY SHORT: the culprits are: services "Remote Access Connection Manager" and "Remote Access Auto Connection Manager", which depend on service "Windows Event Log", which depends on the correct permissions on folder %WINDIR%\System32\WinEvt\Logs
Let me know if this ends up working for you!