Hi tweaker,
Boy do I feel bad. I could have sworn that I replied but I don't see any post. I was wondering why I hadn't heard from you, now I know why.
I played around with this and the only way I could replicate a log similar to yours is by placing the junction inside a folder that I didn't have access to. With out the computer in front of me it's very difficult to say if that is the same situation as you are encountering.
Let me know what you want to do. A backup, reformat and reinstall might be the simplest and fastest solution.
Again I apologise for not posting.