Computer Restarts Instead of Hibernate After Installing Service Pack 1 (SP1) in Windows 7

Many Windows 7 and Server 2008 R2 users have faced a strange problem after installing Service Pack 1. Whenever they try to hibernate their computer, it restarts instead of hibernate.
Microsoft has confirmed this issue and has released update to fix it.

Symptom:

Consider the following scenario:

• You have a computer that is running Windows 7 or Windows Server 2008 R2.
• You use a SCSI miniport driver as the memory dump file device driver or as the hibernation file device driver on the computer.
• You install one of the following updates:
  • Hotfix 2320550
  • Windows 7 and Windows Server 2008 R2 Service Pack 1 (SP1)

In this scenario, one of the following issues occurs:

• When a fatal error causes a Stop condition, the operating system does not generate a memory dump file of the system memory.
• When you try to hibernate the computer, the computer restarts instead of hibernates.

Cause:

This issue occurs because the operating system cannot use the features that are required to create the memory dump file or the hibernation file on the SCSI miniport device.

Solution:

Download and install following update to fix it:
Download Update for Windows 7 (32-bit)
Download Update for Windows 7 (64-bit)
Download Update for Windows Server 2008 R2 (64-bit)
Download Update for Windows Server 2008 R2 (IA-64)