Challenge - Windows 7 Won't boot - System Restore Shows Wrong Drive - SFC Gives Errors

I'm trying to help a friend.  They have no backups (go figure) and Windows 7 is not able to boot after they attempted a system restore for a minor problem that they should not have tried a restore.  The system boots to the Windows logo and stays there for 10 minutes or so and then the system restarts.  Going into safe mode the system stops on classpnp.sys and stays there for 10 minutes and the machine restarts.  I've booted into the Windows RE on system and from multiple disk.  System repair fails with no indication as to why.  When it tries to launch System Restore it throws an error with the startrep.exe (Oxfdbef584d) but still allows me to go back to the Advanced diagnostic screen.  I launch the System Restore and am able to see multiple restore points including the one my friend ran which undo next to it.  When I select one and hit next I'm taken to the next screen and the C drive is listed with the name System next to it which is the system reserve.  In the Windows RE D: is the drive letter that has my Windows install.  When I try to run sfc I get a Windows Protection error.  I've scanned the disk and memory so the hardware is healthy and I'm in the process of scanning offline with a virus rescue disk.  I've called Microsoft and their easy answer was custom install which I'm trying to avoid like the plague.  Any help/miracles you guys can help me with would be greatly appreciated!