Windows 7: Strange error message, system restore, now no usb input or wifi

So. This is a weird one. Today I started getting a strange error message pop up that stated "This operation has been canceled due to restrictions in effect on this computer. Please contact your system administrator." It seems to pop up at random. First couple times, I ignored it. When it persisted, I googled it, only to find most people with this error are having issues with links in outlook. I do not use outlook or IE, and wasn't doing anything browser related during any of the errors, so, lazily, I ignored it again. Finally, when one of these errors kicked me out of my Portal game, I decided I had to do something about it. I decided to just system restore before I went through any huge hassle before I tried figuring anything major out.

System restore went swimmingly, didn't seem to have any issues. But.. My keyboard and mouse, both wireless and usb, weren't working upon reboot. Okay. Different port. Nope. All of them are dead. All. Even the motherboard ones in the back. NO usb device I plug in works, or even registers. To make it weirder, I see that my wireless isn't connecting (the internet is fine) and my sound is muted. Sound was on when I started system restore. It's like all input into my machine is no longer accepted. I know the CD drive works, because inserting a CD even brought up the autoplay window, even though I can't actually input anything.



I haven't messed with it too much, as I'm very tired and annoyed, but if anyone has some clues, please tune me in!

See if you can undo system restore by either:
- going into Safe Mode (rapidly tap the F8 key just before the Windows splash screen shows up.
- going into Startup Repair and using System Restore from there.

Also, try these free, bootable diagnostics: Initial Hardware Diagnostics

I cannot boot into safe mode because my computer is not recognizing my usb keyboard. I don't have a PS/2 one to try. I am making a Ubuntu boot disk right now to see if my windows drivers have just gone insane, or if my motherboard is retarded. Thank you for the reply though.

The free bootable diagnostics don't need Windows to run.
Neither does Startup Repair if you have an full installation DVD or a copy of the Startup Repair Disc that you can make in Windows 7.