Well after almost 2 months emailing with Microsoft Support, we've pin point the problem, and it apears to be Serv-U FTP server. For some reason, when I try to opet any event in Application log, MMC calls Serv-U FTP Daemon as the source for the event viewer! Anyway, MS Support asked me to make a dump file and upload it to them (170+ MB), 10 minutes later, they send me the "solution", to delete the following key HKLM\System\CurentControlSet\Services\Eventlog\Application\Serv-U Ftp Server ... as soon as I have removed the aforementioned key, Application log works just the way it should. I have to try and remove FTP server and install it back on to see if that would help at all ...