Windows update 10 July 2014 - Background/Icons load but nothing more

Hi

Forgive me I am not very computer literate.

Since my windows update 10/7/2014 0315 my computer doesn't work.

Tried:

1. Running explorer from Task manager > new task > explorer.exe

2. tried system restore to 8 July 2014

I am getting reconciled to having to reinstall Windows 7 but reluctant as:

1. acer do not provide a windows 7 disk and not sure how to reinstall from the laptop's own memory

2. When I first got the acer I burned 6-7 dvds with a system restore so I could use that but do not want to lose all my data

3. Really not sure what I am doing lol

4. really don't want lose my data and I have no means to back up the 540gb of data I reluctant to lose it all.

Please help.....Assume I am a real noob.

p.s. a message window just popped up saying "explorer.exe system call failed"

Got it working badly and extra slow with a system restore and I had to reboot and flipping Microsoft updated again landing me again at the beginning again!!!

Any help would be appreciated.

results:

windows resource protection did not find any integrity voilations.

did a tweaking.com step 3 check and found chkdsk_log.txt :

Microsoft Windows [Version 6.1.7601]
Copyright (c) 2009 Microsoft Corporation. All rights reserved.

C:\Users\Oscar\Desktop>CD /D C:\

C:\>chkdsk C:
The type of the file system is NTFS.
The volume is in use by another process. Chkdsk
might report errors when no corruption is present.
Volume label is Acer.

WARNING! F parameter not specified.
Running CHKDSK in read-only mode.

CHKDSK is verifying files (stage 1 of 3)...
9 percent complete. (617460 of 626176 file records processed)
626176 file records processed.

File verification completed.
1132 large file records processed.

0 bad file records processed.

0 EA records processed.

60 reparse records processed.

CHKDSK is verifying indexes (stage 2 of 3)...
16 percent complete. (682219 of 738702 index entries processed)
738702 index entries processed.

Index verification completed.
0 unindexed files scanned.

0 unindexed files recovered.

CHKDSK is verifying security descriptors (stage 3 of 3)...
19 percent complete. (582744 of 626176 file SDs/SIDs processed)
626176 file SDs/SIDs processed.

Security descriptor verification completed.
56264 data files processed.

CHKDSK is verifying Usn Journal...
Examining Usn Journal $J data stream
Usn Journal verification completed.
The master file table's (MFT) BITMAP attribute is incorrect.
The Volume Bitmap is incorrect.
Windows found problems with the file system.
Run CHKDSK with the /F (fix) option to correct these.

716085247 KB total disk space.
662807636 KB in 558268 files.
272604 KB in 56265 indexes.
0 KB in bad sectors.
731211 KB in use by the system.
65536 KB occupied by the log file.
52273796 KB available on disk.

4096 bytes in each allocation unit.
179021311 total allocation units on disk.
13068449 allocation units available on disk.

tried to restore acer windows by using acer's own erecovery system.

I chose "reintall operating system retain data"

it didn't work a popup said installation failed please restart and install again.

This kept happening.

So now I am retrying "restore to original factory settings" using the backup disks I made when I first got the Acer. I really hope this works.

I did try and get help off Windows but they said they would only help if I paid them and I was really not pleased as it was their update that buggered the computer in the first place.