Black screen and mouse after login

I have a Dell Inspiron laptop, although that doesn't seem to matter with this problem. Downloaded a Windows automatic update and went to use the computer later and could not get explorer to come up. Just a black screen with pointer.

I have tried starting in Safe Mode. Doesn't work.
I have tried a Repair. Doesn't work.
I have tried using CTRL-ALT-DEL from the black screen. Will not come up.
I have tried last known good configuration. 5X so far. Gets to Welcome screen and sits for over an hour. So I shut down and try good configuration again. Still unsuccessful.

I have not tried reverting to Dell's original factory settings. I have completely run out of ideas. This is my sons laptop for college and he is in desperate need of it for class. I logged onto MS website and they don't even seem to acknowlege it.

Please respond with whatever help you can.

Corinne

Corrine
See if you can create this recovery CD, you may be ablbe to get to the System Repair Options.
http://www.vistax64.com/tutorials/141820-create-recovery-disc.html