Well, basically, my system restarts several seconds after reaching the login screen, after a few minutes of "Please wait..." on my screen. Even if I do manage to login, it logs off my user account and goes into "Please wait..." then restarts after a few minutes.
This started when my VIPRE Antivirus software caught a virus named 'svchosts.exe', apparently a Trojan Backdoor. When I pressed ok to confirm it, my user account logged off and went into the above mentioned situation.
I have doubts it is a hardware error since I can use the computer in safe mode with no problems. I also checked the memory and hard disks, and there seem to be no errors.
I checked the Event Viewer in safe mode and there seems to be nothing unusual. Only Spybot S&D seems to work in safe mode out of my current antivirus/antispyware programs, so I scanned my system with it and it found nothing.
I turned off automatic restarts at crash and tried again. There were two instances of BSOD, one with a Stop 7E error without pointing to any file and a Stop BE error pointing to Ntfs.sys. After that it went back to "Please wait..." and never BSOD'd again. The memory dump files were, mysteriously, empty.
I tried various solutions in case Ntfs.sys is indeed the cause but all of them indicated that there was nothing wrong with the system file or my hard drive or anything related to it.
Startup Repair using the Windows 7 disc turns up nothing as well. I can't even reinstall Windows 7 without formatting since I can't use the upgrade option in Safe Mode.
I really don't want to format and reinstall everything, so I'm saving that as a last resort.
If it helps, I upgraded to Windows 7 Ultimate 5 days ago from XP, borrowed a friend's copy of Vista without activating it then jumping to 7. I wanted to keep all my previous installed programs, files and settings.
Here are also my basic system specs if it helps:
ASRock ALiveNF7G-FullHD Motherboard
AMD Athlon 64 X2 4600+ Processor
ATI Radeon HD 4670 512MB Video Card
Windows 7 Ultimate Build 7600
I am at my college computer lab right now, will check back later for replies.