The thing about using a program to restore your files is that HD usage needs to be kept to a minimum prior to using such a program, so as to avoid overwriting the deleted files. You have installed programs since the start of this, which doesn't help matters. Add to the fact that all indications point to a virus/ransomeware that either trashed/scrambled your files, it doesn't look good for a full recovery. Your best option would probably be to salvage as many undamaged personal files as possible, format the drive & do a clean install of Windows.
http://www.sevenforums.com/tutorials/1649-clean-install-windows-7-a.html
One more option you can try - a repair install to see if that yields any results. It may, but it's doubtful.
http://www.sevenforums.com/tutorials/3413-repair-install.html
It is upsetting to have to loose everything & restart, but this is the reason backups are highly encouraged. There is always the possibility of this kind of event happening as well as many other events that can trash an OS. Your best bet down the road is to save personal files & pictures on CD, FD or an external HD.
And the best thing you can do is make a System Image. If something like this happens again, you can restore your system to the point of the last Image and you're up & running in about 45 mins.
http://www.sevenforums.com/tutorials/663-backup-complete-computer-create-image-backup.html