This looks like a standard case of missing or corrupted system files. To rectify this, first try a System Restore:
If that doesn't work, dig out your Windows disk (if you have it) and do a repair install:
Those things are real pains. But if you really want to use Readyboost it might be worth it.
Hope you solve your problem soon!
Thank you very much locutus for the solution. I do some troubleshooting this couple of days until I do a repair install. I'm afraid to do a repair install because I though that all my user settings and program settings are lost which is really pain, but windows 7 have a good repair install. It preserve all the user settings and also program settings which is really great! even my manual tweaks are preserve. Now my readyboost is working and also windows 7 buildin parental control which have a problem after installing windows live parental control.
Again thank you very much.
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