I found loads of junk and useless info on this topic, then came across this link:

KBAlertz.com: The SFC.exe command reports Settings.ini file errors in the CBS.log file after you add gadgets to the Windows Vista Sidebar by using the Sysprep tool and an Autounattend.xml file

I post this so others don't waste a bunch of time on this. I even deleted and recreated the file before finding this info. Waste of time. Thanks, Microsoft.

Here is the gist of it.

SYMPTOMS

You use the System Preparation (Sysprep) tool and an Autounattend.xml file to add a custom gadget to the Windows Sidebar in Windows Vista. When you run the SFC.exe /scannow command or the SFC.exe /verifyonly command, you receive error messages in the CBS.log file. Back to the top

CAUSE

This problem occurs because the SFC.exe command falsely reports the Settings.ini file information in the CBS.log file.Back to the top

STATUS

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.Back to the top

MORE INFORMATION

You can safely ignore the error messages in the CBS.log file. The SFC.exe command falsely reports the Settings.ini file information in the CBS.log file.

You may receive error messages that resemble the following in the CBS.log file.

Note The CBS.log file is located in the %SystemRoot%\Logs\CBS folder.