Event ID 8194 Volume Shadow Copy Service Error - RESOLVED
Found the problem. Using Gigabyte MB, it comes with a program called Smart6 which includes a module called Smart Recovery. Looks like this module does something similar to System Restore. Anyway, I just disabled it and the problem is gone. I guess Smart6 and Win7 are not playing well together at this time. Thought I'd pass this along just in case anyone else runs into this problem.