Thanks for your reply.
The system is a Dell SC440 with mirrored drives on a RocketRaid RAID card. The drives are not full.
Most services which are failing point to WindowsServerServiceProviderRegistry as a dependency. It is not started.
Windows Server Service provider registry gives me a 1067 error: Windows could not start the Windows Server Service Provider Registry service on Local Computer. The process terminated unexpectedly. It's dependencies are started.
The Event viewer has an error on ProviderRegistryService.exe....Unhandled exception in OnStart System.Configuration: Configuration Errors Exception: Unable to open the configSourcefile 'system.diagnostics.config' (C:\Program Files\Windows Server\Bin\ProviderRegestryService.exe. Config line 43
Line 43 in that file is </configuration>
Re side question: Yes I have been running WHS2011 in a VM on a QNAP TVS871 since earlier this year. I was previously running WHS2011 on an HP N54L with "Lights out" and "Cloud Berry Backup". My various Windows Clients used to backup into the HP machine and the HP machine backed up it's RAID 5 array (>2TB) via Cloud Berry into another local NAS box. The main issues I have found with using VM's related to Power control, Time and Date and Windows new continuous update service. The QNAP box doesn't talk power control with what's running on the VM, so Lights out just turns the VM on and off but not the underlying NAS box. I don't have a work around. A lot of newish programs in VM's will pick up their time and date from the underlying NAS box. WHS2011 doesn't. The work around here is to set up a sync job in WHS2011 using Task Scheduler. The new Windows continuous update service makes life difficult as you cant just power down the NAS randomly. You need to check the status of WHS2011, shut it down, shut the VM down and then turn the NAS off. After much playing around with how to arrange my various processes I have currently settled on using most of the functionality in the NAS box and limiting WHS2011 to hosting "MyMovies". Backup of all the ex Windows Clients is done by using the local Windows Backup process in each ex Client. OK for Win7 and Win 10 but not so hot for Win8 as it doesn't have an image backup process. So best of luck on your journey, hopefully you have a bit of a guide to some of the potholes on the journey