Right according to Dxdiag i have directX11 but im trying to reinstall 9.0c however i get the warning an internal system error has occurred and to check the dxerror.log and directx.log which i have done and the following is from the directx.log:
04/13/10 11:19:04: DXWSetup: ***** DXWSETUP *****
04/13/10 11:19:04: DXWSetup: WinMain()
04/13/10 11:19:04: DXWSetup: IsIA64(): not IA64.
04/13/10 11:19:04: DXWSetup: Unable to get Version on target file C:\Windows\system32\directx\websetup\dsetup.dll
04/13/10 11:19:04: DXWSetup: Installed file C:\Windows\system32\directx\websetup\dsetup.dll
04/13/10 11:19:04: DXWSetup: Unable to get Version on target file C:\Windows\system32\directx\websetup\dsetup32.dll
04/13/10 11:19:04: DXWSetup: Installed file C:\Windows\system32\directx\websetup\dsetup32.dll
04/13/10 11:19:04: DXWSetup: GetDXVersion(): This may be a older DirectX which does not have the version value in the registry.
04/13/10 11:19:04: DXWSetup: DirectX Version: 0.00.00.0000.00
04/13/10 11:19:04: DXWSetup: Setup Version: 4.09.00.0904.00
04/13/10 11:19:04: dsetup32: IsWow64(): not Wow64 process.
04/13/10 11:19:08: DXWSetup: CDXWSetup::CDXWSetup()
04/13/10 11:19:08: DXWSetup: CDXWSetup:

ownloadDXUpdate()
04/13/10 11:19:08: DXWSetup: OnEngineStatusChange(): EngineStatus = 0x1, SubStatus = 0x0
04/13/10 11:19:08: DXWSetup: OnEngineStatusChange(): EngineStatus = 0x3, SubStatus = 0x0
04/13/10 11:19:08: DXWSetup: OnEngineStatusChange(): EngineStatus = 0x2, SubStatus = 0x0
04/13/10 11:19:08: DXWSetup: OnStartInstall(): DLSize = 81, InstallSize = 0
04/13/10 11:19:08: DXWSetup: OnStartComponent(): ID = DXUpdate, DLSize = 81, InstallSize = 0, str = %DirectX_Setup%
04/13/10 11:19:08: DXWSetup: OnComponentProgress(): Phase = 0, Progress = 0
04/13/10 11:19:09: DXWSetup: OnStopComponent(): ID = DXUpdate, hr = 0x0, Phase = 9, str = %DirectX_Setup%, status = 0x0
04/13/10 11:19:09: DXWSetup: OnStopInstall(): hr = 0x0, str = (null), status = 0x0
04/13/10 11:19:09: DXWSetup: OnEngineStatusChange(): EngineStatus = 0x3, SubStatus = 0x0
04/13/10 11:19:09: DXWSetup: WM_APP_DOWNLOADDXUPDATE
04/13/10 11:19:09: DXWSetup: CDXWSetup::InitInstallEngine()
04/13/10 11:19:09: DXWSetup: Use string section : [Strings.ENG]
04/13/10 11:19:10: DXWSetup: OnEngineStatusChange(): EngineStatus = 0x1, SubStatus = 0x0
04/13/10 11:19:11: DXWSetup: OnEngineStatusChange(): EngineStatus = 0x3, SubStatus = 0x0
04/13/10 11:19:11: DXWSetup: GetDXVersion(): This may be a older DirectX which does not have the version value in the registry.
04/13/10 11:19:11: DXWSetup: DXVersion: 0.00.00.0000
04/13/10 11:19:11: DXWSetup: Install Section: [S;.JSE;.WSF;.WSH;.MSC_ENG]
04/13/10 11:19:11: DXWSetup: CDXWSetup::InitInstallEngine(): SetAction() failed, error = 0x80070057.
04/13/10 11:19:11: DXWSetup: PreinstDlgProc(): CDXWSetup::InitInstallEngine() failed.
04/13/10 11:19:11: DXWSetup: WM_APP_ENDDOWNLOAD
04/13/10 11:20:37: DXWSetup: CDXWSetup::~CDXWSetup()
04/13/10 11:20:39: DXWSetup: CreatePropertySheet() returns -9.
04/13/10 11:20:39: DXWSetup: Deleted file C:\Windows\system32\directx\websetup\dsetup.dll.
04/13/10 11:20:39: DXWSetup: Deleted file C:\Windows\system32\directx\websetup\dsetup32.dll.