After updating BIOS, Windows 7 won't start up !?

You want to call Tech Support for real time help, not email.

You also want to keep SATA controller setting at AHCI for the reinstall.

Look at the tips for getting a Perfect Reinstall based on hundreds which have worked best here.

If you truly changed out the drivers given by the Windows 7 installer then I would do it over according to those steps.

Win7 is driver complete, with newer arriving quickly after install via optional Windows Updates. Only drivers missing afterwards in Device Manager should be imported.

This is not XP. Win7 is the authority on its own drivers.

Thanks, it was a mess all right.
Just checked my mail, I received an answer from ASUS support - the advice is "change IDE to AHCI or AHCI to IDE". Turns out I lost nothing by solving this on my own, I've already tried what they advised me now, and it does not work !!! I'm gonna write them back & say what they suggest doesn't work, also that their application made the whole mess to begin with.

I would not alienate them but provide constructive feedback about the BIOS auto-update peril.

You want to keep them ready to help RMA any or all hardware within the year period and be on call for tech support - such as a BIOS update which is always best to have supervised by tech support so they won't try to weasel out of an RMA if it bricks the box.

I've written back to ASUS local tech. support, I tried to be constructive as much as possible, but this whole issue has pissed me off big time, I've lost plenty of time & nerves over it. I did explain everything that happened & asked for my complaints & remarks to be passed further on to ASUS Development. I mean, I love ASUS and all, it was my first choice for buying laptop, but this bug of including BIOS Flashing in Asus Live Update was a proposterously wrong decission. Period. I did everything and couldn't restore my system, their advice too, none of it worked. And it could have been worse - if it had been a working computer with data on it, everything would be lost. One unintentional click hidden among drivers & software updates doomed the system.. it never should have happened, its poor implementation.