install drive encryption GO and check the status of the disk , some time activation may fail due to bad hard disk.
The error seen in the MfeEpe.log is that no users are assigned:
failing policy enforcement: no users assigned for activation to proceed.
MDE will not activate without users assigned to the system. Because you have no domain, Add Local Domain Users (ALDU) will not automatically assign any users.
You will need to use the "User Directory" to create users and manually assign these users to the machines. More information regarding User Directory can be found in the MDE 7.1 FAQ.