Login Process Intitialazation initialization failure

I know you guys have seen this problem before; however, I guarantee you that my problem is slightly unique.

I use Storagecraft Shadow Protect to make backup copies of my Operating System (Windows 7). The last time I backed up was on the 17th of this month. Subsequent to that, I reverted to that backup several times, without changing it at all.

Now, today, I decided to revert my system to that backup once again and behold: Login Process Initialization failure.

How could this effect my backups? I backed up my system BEFORE I ever even encountered this error.

On top of that, the ASUS recovery disc I have can't read the HDDs. (The HDDs are working fine, they've been tested).

I tried the repair disc. And, these system recovery discs just suck. It won't even work.

I even tried reverting to a backup I made several months ago.... same error. How is that even possible?

I tried reverting to a backup I made back in February, and the operating system boots perfectly; however, for some reason, it's unstable. (It wasn't unstable before, and I have it backed up on 3 Hard Drives). Additionally, nothing can be installed and some of the programs are missing in the Uninstall List.

Oh! One more thing! To prove that the ASUS recovery disc is being stupid, I actually found a Windows Vista install disc and just loaded it to see if it was able to read the two internal HDDs. It read them perfectly and when I clicked install, it began to install. (I cancelled it right away as it was only for testing).

When attempting to install the restore disc, selecting the option to install to the entire HDD, I get the following error:

Access Violation at address 00405045 in module 'PERecover.exe Read of address 0000000C'