7600 'Build is not genuine'

I started the computer today and after logging in, the desktop turned to a black screen, with 'Build 7600-This copy of windows is not genuine'.

No start button or anything.

I pressed Ctrl+Alt+Del and started cmd, as that was the only thing that worked. Then I noticed, that instead of the usual "C:\User" prompt, it instead read "C:\found.000\dir0001.chk\system32>"
I tried running the registry editor, but that would not start.
The installation disk does not work either.
Any ideas?

Seems like you've been shafted by a seller. IMO.

I bought the disk from Best Buy.

Update: System Restore starts from the installation disk, but it cannot find an image.

Are you hitting F12 at statrup and setting it to boot from the cd?

I booted from the CD (hit F12) and went to System Restore. It didn't find any recovery points.

Did you have system restore turned on? Are you dual booting with XP? Are you able to boot into safe mode? Sorry for all the questions.

System Restore was turned on. No dual booting with XP. However, looking at the Startup Repair details (it did not find any problems), the Windows directory is C:\found.000\dir0001.chk. Is Windows using the disk check directory to check if the copy is genuine?

I wouldn't suspect so. Such a folder is usually the result of running a chkdsk and is generated when errors are found.

How old is your HD?

Boot the WIn7 DVD Repair console, click through to Recovery TOols list to Run Startup Repair up to 3 separate times with reboots: Startup Repair - Run 3 Separate Times

Go to what's left of the desktop, place your Install DVD in the tray to see if it will autostart to run a Repair Install from desktop. If not, access Task Manager using Cntrl Alt Del, on first tab start New Task and type d:\setup in the Run box to see if Repair install can be Run. Replace d: with your DVD drive letter if different.

This behavior on legit copies can be due to drive letter slipping although it usually happens during reimaging. Check that your drive letter is correct in Registry using this method: https://www.sevenforums.com/installation-setup/51503-moving-win7-partition-another-drive.html

If all fails, copy out your files using this method: Copy & Paste - in Windows Recovery Console

Run HD diagnostics/repair full CD scan: http://www.tacktech.com/display.cfm?ttid=287 Followed by Disk Check if it finds bad sectors to repair, since chkdsk will have already been run if needed by Startup Repair. Sometimes you need the surface repair before chkdsk will repair file system.