No wallpaper Black screen desktop after update

Hi,
I have a Windows 7 Ultimate desktop pc.To save download bandwidth (internet is not unlimited plan) and as read on the net that windows update slows down the pc I switched of automatic windows update.But recently the automatic update was switched on accidentally by another user in my house.Ever since the update has taken place I am getting a black screen on the desktop.I cannot see any wallpaper.Even tried changing the wallpaper and the theme but nothing happens.Please help me remove the black screen.

Please download and run this tool, then copy and paste the results file in your post.

You should always keep Windows Update on and set to Automatic. Install all Important and Optional Updates for best performance and security.

gregrocker said:

Please download and run this tool, then copy and paste the results file in your post.

what is this MGADiag tool for? what it does?

The MGADiag report:

Code:

Diagnostic Report (1.9.0027.0):
-----------------------------------------
Windows Validation Data-->

Validation Code: 0
Cached Online Validation Code: N/A, hr = 0xc004f012
Windows Product Key: *****-*****-V9488-FGM44-2C9T3
Windows Product Key Hash: rmk1OjF0iZq7gQoRmEcpnJHr0oc=
Windows Product ID: 00426-OEM-8992662-00010
Windows Product ID Type: 2
Windows License Type: OEM SLP
Windows OS version: 6.1.7600.2.00010100.0.0.001
ID: {61978A2D-EA38-4978-9656-00A78A4D9463}(1)
Is Admin: Yes
TestCab: 0x0
LegitcheckControl ActiveX: N/A, hr = 0x80070002
Signed By: N/A, hr = 0x80070002
Product Name: Windows 7 Ultimate
Architecture: 0x00000000
Build lab: 7600.win7_rtm.090713-1255
TTS Error: 
Validation Diagnostic: 
Resolution Status: N/A

Vista WgaER Data-->
ThreatID(s): N/A, hr = 0x80070002
Version: N/A, hr = 0x80070002

Windows XP Notifications Data-->
Cached Result: N/A, hr = 0x80070002
File Exists: No
Version: N/A, hr = 0x80070002
WgaTray.exe Signed By: N/A, hr = 0x80070002
WgaLogon.dll Signed By: N/A, hr = 0x80070002

OGA Notifications Data-->
Cached Result: N/A, hr = 0x80070002
Version: N/A, hr = 0x80070002
OGAExec.exe Signed By: N/A, hr = 0x80070002
OGAAddin.dll Signed By: N/A, hr = 0x80070002

OGA Data-->
Office Status: 109 N/A
OGA Version: N/A, 0x80070002
Signed By: N/A, hr = 0x80070002
Office Diagnostics: 025D1FF3-364-80041010_025D1FF3-229-80041010_025D1FF3-230-1_025D1FF3-517-80040154_025D1FF3-237-80040154_025D1FF3-238-2_025D1FF3-244-80070002_025D1FF3-258-3

Browser Data-->
Proxy settings: N/A
User Agent: Mozilla/4.0 (compatible; MSIE 8.0; Win32)
Default Browser: C:\Users\DARRYL\AppData\Local\Google\Chrome\Application\chrome.exe
Download signed ActiveX controls: Prompt
Download unsigned ActiveX controls: Disabled
Run ActiveX controls and plug-ins: Allowed
Initialize and script ActiveX controls not marked as safe: Disabled
Allow scripting of Internet Explorer Webbrowser control: Disabled
Active scripting: Allowed
Script ActiveX controls marked as safe for scripting: Allowed

File Scan Data-->
File Mismatch: C:\Windows\system32\wat\watadminsvc.exe[Hr = 0x80070003]
File Mismatch: C:\Windows\system32\wat\npwatweb.dll[Hr = 0x80070003]
File Mismatch: C:\Windows\system32\wat\watux.exe[Hr = 0x80070003]
File Mismatch: C:\Windows\system32\wat\watweb.dll[Hr = 0x80070003]

Other data-->
Office Details: <GenuineResults><MachineData><UGUID>{61978A2D-EA38-4978-9656-00A78A4D9463}</UGUID><Version>1.9.0027.0</Version><OS>6.1.7600.2.00010100.0.0.001</OS><Architecture>x32</Architecture><PKey>*****-*****-*****-*****-2C9T3</PKey><PID>00426-OEM-8992662-00010</PID><PIDType>2</PIDType><SID>S-1-5-21-1650043410-3746703891-2721274389</SID><SYSTEM><Manufacturer>INTEL_</Manufacturer><Model>DH61WW__</Model></SYSTEM><BIOS><Manufacturer>Intel Corp.</Manufacturer><Version>BEH6110H.86A.0041.2012.0319.1659</Version><SMBIOSVersion major="2" minor="6"/><Date>20120319000000.000000+000</Date></BIOS><HWID>81BB3607018400FE</HWID><UserLCID>0409</UserLCID><SystemLCID>0409</SystemLCID><TimeZone>India Standard Time(GMT+05:30)</TimeZone><iJoin>0</iJoin><SBID><stat>3</stat><msppid></msppid><name></name><model></model></SBID><OEM><OEMID>ACRSYS</OEMID><OEMTableID>ACRPRDCT</OEMTableID></OEM><GANotification/></MachineData><Software><Office><Result>103</Result><Products><Product GUID="{90120000-0030-0000-0000-0000000FF1CE}"><LegitResult>103</LegitResult><Name>Microsoft Office Enterprise 2007</Name><Ver>12</Ver><Val>ACD7202654E586</Val><Hash>fFic3JgCreGGRxyF8uMWB4R4Jcg=</Hash><Pid>89388-707-1528066-65132</Pid><PidType>14</PidType></Product></Products><Applications><App Id="15" Version="12" Result="103"/><App Id="16" Version="12" Result="103"/><App Id="18" Version="12" Result="103"/><App Id="19" Version="12" Result="103"/><App Id="1A" Version="12" Result="103"/><App Id="1B" Version="12" Result="103"/><App Id="44" Version="12" Result="103"/><App Id="A1" Version="12" Result="103"/><App Id="BA" Version="12" Result="103"/></Applications></Office></Software></GenuineResults>  

Spsys.log Content: 0x80070002

Licensing Data-->
Software licensing service version: 6.1.7600.16385

Name: Windows(R) 7, Ultimate edition
Description: Windows Operating System - Windows(R) 7, OEM_SLP channel
Activation ID: 7cfd4696-69a9-4af7-af36-ff3d12b6b6c8
Application ID: 55c92734-d682-4d71-983e-d6ec3f16059f
Extended PID: 00426-00178-926-600010-02-1033-7600.0000-2002011
Installation ID: 002713046755326995337312419701584325370864050244950166
Processor Certificate URL: http://go.microsoft.com/fwlink/?LinkID=88338
Machine Certificate URL: http://go.microsoft.com/fwlink/?LinkID=88339
Use License URL: http://go.microsoft.com/fwlink/?LinkID=88341
Product Key Certificate URL: http://go.microsoft.com/fwlink/?LinkID=88340
Partial Product Key: 2C9T3
License Status: Licensed
Remaining Windows rearm count: 3
Trusted time: 15-Jul-13 1:51:04 PM

Windows Activation Technologies-->
HrOffline: 0x00000000
HrOnline: N/A
HealthStatus: 0x0000000000000000
Event Time Stamp: N/A
ActiveX: Not Registered - 0x80040154
Admin Service: Not Registered - 0x80040154
HealthStatus Bitmask Output:


HWID Data-->
HWID Hash Current: LAAAAAEAAgABAAEAAAABAAAAAQABAAEA6GHKGjzobFV86R4zaolqxyjOLnM=

OEM Activation 1.0 Data-->
N/A

OEM Activation 2.0 Data-->
BIOS valid for OA 2.0: yes
Windows marker version: 0x20001
OEMID and OEMTableID Consistent: yes
BIOS Information: 
  ACPI Table Name    OEMID Value    OEMTableID Value
  APIC            INTEL         DH61WW  
  FACP            INTEL         DH61WW  
  HPET            INTEL         DH61WW  
  MCFG            INTEL         DH61WW  
  SSDT            INTEL         DH61WW  
  SLIC            ACRSYS        ACRPRDCT

You are running a pirate version of Windows, you will need to purchase a genuine copy to fix the problem.

z3r010 said:

You are running a pirate version of Windows, you will need to purchase a genuine copy to fix the problem.

Pirated copy? How did you find it

You have a custom built PC using a OEM SLP key.

I had paid ten thousand extra for genuine copy of installation.the dealer explained the price saying that he would be installing a Volume license key.
As said my user "z3r010" my pc has a pirated windows version.So maybe in the update that was detected.I would like to know that what exactly has happened to my pc.
Has my activation been deactivated or something else?
If yes what would be the consequences of it?
Would windows stop working?
If I purchase a genuine copy to fix the problem do I have to reformat the windows system drive and carry out fresh installation?