I too was facing the same problem with the usb internet connection - huwaei. with the errors 711 and 1068. tried a few solutions from the net for a while but no joy. finally I was lucky to get to this page and renaming the rtbackup folder worked for me too.
However I too could not rename it in safe mode thru 'cmd'. what I did was booted to windows 7 normally and used windows explorer to browes to the folder WMI and tried to rename the rtbackup folder, yet got access denied. but when I tried to enter the folder
'rtbackup' windows gave me a warning message something like this - access denied, click continue to gain permanent access to this folder - after clicking on continue i was able to rename the folder and restarted and was able to resolve the issue successfully.
Thanks a lot for the solution!