You can next try a
Repair Install from desktop but with irreparable files you often need a clean reinstall. In your case, I would zero the HD using DISKPART "Clean all" command from Windows 7 DVD Repair console Command Line, or use free Partition Wizard CD to Wipe Disk.
If you clean reinstall, I suggest ditching the AVG bloatware to install the expert's top new free AV choice, MS Security Essentials.
In the future, rightclick scan any torrent downloads as you have likely been infected and had inadequate protection.