Event ID 7026 and i8042prt is a recurring error in the Windows Event Logs. I usually see this error on a server reboot .

It’s normal for a server to not have a keyboard or mouse attached. I usually suppress the error , by creating a headless entry.

 The  errors occurs if you don’t plug in a PS/2 keyboard – which causes the drivers to not move to SYSTEM32\DRIVERS

Event Type:Error
Event Source:Service Control Manager
Event Category:None
Event ID:7026
Date:20/12/2011
Time:22:29:40
User:N/A
Computer:SERVER1
Description:
The following boot-start or system-start driver(s) failed to load: 
i8042prt

Solution 1

Plug in the PS\2 keyboard at least once and reboot

Solution 2

1. Go to Start > Run and put "regedit.exe" and click "Ok";

2. Navigate to HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\i8042prt\Parameters in Registry Editor;

3. Add a new REG_DWORD "Headless" and set the value to 1;

4. Reboot the server.