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#11
If F8 is not accessible then you'll need the Repair CD or Win7 Installation DVD to run Repairs. Did you say you have a bootable USB flash stick Win7 installer? The Repair console is on second screen.
I'd first check for infection by downloading and burning to CD or writing to USB stick Microsoft Standalone System Sweeper then boot to run a full scan.
If it cleans up infection then in addition to running Startup Repair a few times, trying System Restore from the DVD/CD Recovery Tools list, I'd open a Command Prompt to run SFC -SCANNOW Run in Command Prompt at Boot
Report back results for each step. You can copy out your files using the DVD/Repair CD this way: Copy & Paste - in Windows Recovery Console