New
#11
Personally, I would bite the bullet and go for a factory restore seeing as you have a set of recovery discs.
At best, you'll finish up with a pristine system. At worst, you'll be no worse off than you are now.
As a matter of interest, who is your computer manufacturer? If you carry out a factory restore and you still have the same problem it will prove that the system was corrupt from day one.
In that case you would have redress against the system builder and you would be within your rights to insist they give you a fully-working non-corrupted operating system.
If you have access to a Windows 7 DVD (a friend's DVD for example) you could use that to carry out a clean install of Windows using your OEM product key to activate it.
You could also download a Windows 7 ISO and use that to reinstall Windows.
Clean Install : Factory COA Activation Key