There are reports coming in of Windows 7 install failures causing problems for users. There will always be some failures, but normally there is an easy way to rollback; unfortunately SP1 is making machines unbootable in a number of cases:

I have about 10pc’s in my company. They all failed this morning after the service pack 1 for windows 7 x64 systems.

I wonder on a global scale what financial damage this service pack caused. Isn’t a service pack made for fixing issues instead of creating new ones.

So now what? Tomorrow windows installs it again and the company stops working again? Is there a fixed update in the making???

A typical issue is “fatal error c0000034 applying update operation”.

If this happens to you, there are some emergency fixes suggested in the thread referenced above.