windows V7 pro workstation fails to boot

After a failed Microsoft update our workstation hangs at the windows splash screen.

When we press f8 we can use the last known god configuration and that works fine. However when we restart it hangs again at the windows splash screen.

I system repair booted from our cd says it finds an error and offers to fix it, which then causes a reboot, but again it hangs. We tried a system restore to the only one available which appears to have been taken just before the update, but this fails again at the restart.

Is there a way to make the last known good settings those used for our system boot?

So frustrating having to f8 and use this option each time.

Any suggestions appreciated.