[Cannot Update DirectX 9.0c]

Both DXError logs are failing at the same spot - trying to load C:\WINDOWS\system32\xactengine3_0.dll. The error is illegal instruction, which could be a version mismatch or just a corrupted file.

Can you uninstall DirectX from Add Remove Programs? If so, reinstall afterward and that should help. If you can't, there are a few uninstallers for DirectX here that you can rock before reinstalling fresh: http://www.raymond.cc/blog/how-to-uninstall-directx-and-reinstall-to-repair-directx/2/

Just create a restore point first to be safe.

[more ram free size]

You can use up to 1GB of RAM on PE2 - PE4 by modifying the WinPECacheThreshold value. But, on PE5 you can only use 512MB.

More info here: http://blog.internals.io/sizing-pes-ram-drive/