Vista - Vista SP1 update leads to Windows start-up failure

Hi everyone

I just helped my boyfriend update his Windows Service Pack 1 (he's using Vista Business 32bit). Along with this update, I also downloaded the latest AVG Internet Security program (paid subscription).

After the updates, everything seemed to work fine, except for the Fujitsu Shock Sensor Utility, which said that there were compatibility issues. According to the Fujitsu FAQ (Support & Downloads - FUJITSU Singapore), I could download a patch to solve this issue.

After downloading the patch, everything was fine and dandy.

But now when I try to start up the laptop, it says Windows Fails to Boot and it goes to a black screen. I tried to do a system restore but it all the restore points are gone. It can't repair automatically and I can't even boot Windows into safe mode (using the F8 button at start-up).

Please help! Even if I have to reinstall everything, is there any way to recover all the files in the hard disk before we do a complete restoration?

Thanks!