The absolutely easiest way to do a system restore when you can't boot....
If you have access to a CD burner, do the following:
Download the Microsoft Diagnostics and Recovery Toolset (formerly known as ERD Commander).
http://www.microsoft.com/downloads/details.aspx?familyid=5D600369-0554-4595-8AB4-C34B2860E087&displaylang=enDownload it. Run it. It will create an ISO file located at c:\Program Files\Microsoft Diagnostics and Recovery Toolset\ and called erd50.iso . Burn the iso file to a CD. Boot the CD. You will boot into a windows environment. From there, you have access to a great many tools, such as system restore, checking the drive, and much more. I would try doing a restore first.