Can someone tell me what happened?

I dont know how to explain it. So please take a look at these pictures.
Keep in mind, I have not modified the explorer except for a custom Start Button and Logon background (Which i did months ago).

I followed a guide demonstrating how to check and repair my C: drive for errors. (It wasnt showing up in the list of drives for defrag). Just check out this link:
Can't defrag the "C" drive - Microsoft Community

it happened after doing the "sfc /scannow" command. It said it couldnt fix all errors, and restart to apply changes or whatever. So I did, and now this. Im stuck.

I dont have a bootable recovery partition, and for the life of me I cant create a bootable USB drive without downloading the .iso again, which takes like 2 hours. I had a bootable flash drive but for some reason it just wont work. But thats another story. Point is, I cant boot into a recovery drive to do a system repair and all that good stuff.

Anyway, please take a look at the pictures:
The fist picture is the "ctrl+alt+delete" screen. The second is the side pane that you see when in a folder. The third is the task manager. The fourth is my right click menu (i right clicked on the task bar). The fifth is just my desktop as shown once I log on.

I'd start at the top and work through the steps for Troubleshooting Windows 7 Failure to Start
since infection can't be ruled out.

You'll also need the installation DVD or flash stick provided for repairs and possible reinstall if you get to the end of the steps without success. It's silly to complain about a two hour download compared to hundreds of dollars to repair at a shop.

You can also try accessing System Recovery Options from the F8 Advanced Boot Options to run Startup Repair and System Restore as well as several other steps in the tutorial.