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I just got a chance to try Single User Mode and it reports that launchd is missing (errno 88). It looks like I probably have to reinstall OS X as well >.<

ps - I have a MacPro and not a MacBook.

I have the same problem. I was using Software Update to install and left the computer terminal (I don't believe I had any other software running) to take care of other things. I came back and Software Update said there had been an installation problem. I didn't reboot and successfully...