You're right there - things are getting interesting - just not for the better
It could be best if you could do this on another Win 7 x64 machine, but can you create a Repair disk to see what you get when you boot up with that ?
Go Start - type repair and the option to Create a System Repair disc should come up to click on.
You would need to tap F12 as you switch on then select ODD or CD/DVD - insert the disk and press enter, then press any key to boot from the CD/DVD when momentarily prompted.
If you can't get beyond confirming the language then you wouldn't even be able to get to the RE to use the option to factory reset in the case of an OEM machine.
I can send you a couple of Win 7x64 SP1 install disks (one spare) to boot up with, but there's no guarantee that an offboot sfc /scannow would work, but if you want to PM me your address, I'll burn and send them off to you to try.
If you are using an OEM machine then you usually have the option to create a set of Recovery disks.
This will be a copy of what is in the Recovery partition so that you can factory reset with those, but you would need to back up your personal stuff first and then reinstall any programs after, ensuring you have the product keys for any paid ones.
You'd also have the likes of Java, Adobe products and the dreaded Windows updates to download/install, but at least after a factory reset, Windows Updates should work.
As for the problems you have had in trying to get to the RE, I'm not sure if Event Viewer would have recorded anything for that, but can you download MiniToolBox and run it with all of the boxes checked.
You can copy & paste its Notepad output into the reply box by right clicking in the text area - click on Select all then right click again and select Copy.
Right click in the reply box and select Paste.
http://www.bleepingcomputer.com/download/minitoolbox/