PROCESS1_INITIALIZATION_FAILED Blue screen on boot for Server 2008r2

After a server failed the other day with the PROCESS1_INITIALIZATION_FAILED stop error, I decided to restore the machine from backup. Even after my oldest restore (3 weeks ago), it still returns the same error on boot. While Attempting to boot into Safe mode, it appears to choke on the avgidsha.sys file.

The machine is Hyper-V based which rules out any hardware issues.

I am able to boot to Windows RE and upon entering the command prompt I have:

1.) Deleted bootcache.cache file from \Windows\system32\CodeIntegrity.
Result: Nothing.

2.) Rebuild MBR and fixboot
result: Also nothing

3.) verify disk integrity  with Chkdsk.
result: Disk is fine.

I've gone through three weeks worth of backups in an attempt to restore this machine to working order. I can't just wipe it an start over because this is a license server for our Citrix environment, in addition to being our radius authentication server.
smcdonoughAsked:
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nobusConnect With a Mentor Commented:
maybe the solution from sh4wn helps :  I renamed all the files in the drivers folder with a .bak extension
see :  http://forums.avg.com/us-en/avg-forums?sec=thread&act=show&id=202313
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smcdonoughAuthor Commented:
@nobus:

This suggestion worked to get past the AVG hang, but now it is hanging on a different .sys file (disk.sys).

I'm pretty sure I'm going to have to scrap the whole thing and pull my license files off the VHD file, then recreate the entire RADIUS server from scratch.
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nobusCommented:
for the chkdsk - did you use the fix error option?
maybe rerun it
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smcdonoughAuthor Commented:
@nobus

The server continued to fail even after repeating my first steps (Chkdsk, delete bootcache, etc). I wound up rebuilding the server from scratch and pulling off my licenses from the previous VD.
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smcdonoughAuthor Commented:
A solution could not be found to this problem, but the provided answer did solve at least one question.
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nobusCommented:
tx for feedback
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