yup, sounds like a total screw-up. I've had the exact same thing more times than I care to remember, and i've only ever remedied it wiping the Hard Disks and reinstalling windows (though doing the later may have been enough on its own)...
If you feel brave, you could try reinstalling windows (or in fact, you could try installing a completely different version - its always good to have an OS to fall back on when one goes wrong), if only to back-up all your important files. I'm not sure what computer repair people do when the only option may be to get rid of everything on the drive and start again.
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