I would try this:
If you have space, reinstall win 7 from the iso, without formatting, that should put your existing stuff into windows.old. You should be able to boot into the new installation and get your data out of the windows.old folder.
Forgot to add that when I boot normally I get this message: "the user profile service failed the logon."
Otherwise I've tried to run wusa.exe in safe mode with cmd to remove the update even though DISM didn't see it (who knows) and so far it looks like cmd is useless in here.
Thanks for the response, I'll definitely try that!
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