You have a System Repair CD, not an Installation DVD.
It sounds like it repaired the problem until you installed Updates at reboot, correct? You should have a System Restore point any time you install Updates, so if there is a problem with the Updates installing, System Restore and install the Updates one-by-one until you find the one which is causing the problem, then open a Support Case on WIndows UPdates website to resolve that Update via email.
If this is not the full problem, or doesn't solve it, I would find or borrow a Windows 7 installation DVD to clean reinstall the OS after backing up files externally and wiping the HD of all code:
SSD - HDD Optimize for Windows Reinstallation. I have found this is always a superior install on an eMachine which never integrates factory preinstalled bloatware or utilities well.
We are not allowed to link to the Windows 7 installation ISO here but you can search for it on a safe site like Digital Life which hosts official downloads. Follow these steps to get a perfect reinstall:
Reinstalling Windows 7