>Ok, I have seen Windows do some strange things in the past, but this has to be the wrost. I have been have endless problems with Windows 7 for the last 6 months. First, it decided that the registered version is not genuine, and the solution is running a activation application; that will not run because the OS thinks it is not genuine. Next, it decides that the Anti-virus programs are not something, and will not run them either. Started to collect viruses. At this point I became afraid to even turn on the machine.
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>Well, yesterday I was told about a alternate way to activate the OS. So, I return home and turn on my machine. It boots as normal, and I am prompted with a MS update massage with a OK button. Unable to do anything else, I press the button. Boom, the machine informs me that it needs to restart and proceeds to do so. Know that this may take a few minutes, I go for a beer. When I return I see that the machine is in the process of preforming a system recovery from a earlier state. Unable to cancel it, I was left to sit back and pray. Once completed, all the previous problem have been removed, along with every thing else on my C: drive. It had returned to the original factory Window 7 Home edition.
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>Luckly I do not keep Anything of importance on the OS drive just because of wierd thing like this.

If you're sure you have a legit copy of Windows you need to get that "not genuine" issue cleared up. Until you do, you don't get various Windows updates or service packs, your machine is vulnerable to malware. Microsoft Security Essentials antivirus will run only on "genuine" Windows as well.

If you have a name brand computer you should be able to get help from the manufacturer. If it's generic/white box, unfortunately some of them misuse volume license keys, or resort to cracked license keys when they sell their product. MS eventually invalidates those keys, so end users end up with non-genuine software.