There is a single account on the computer.

I think I may have hibernated the computer while logging off (MAYBE).

But now, doesn't matter if I cut the power, boot in safe mode, delete restoration data, it will do it:

Please Wait...>Welcome>Logging Off.

PLEASE HELP!

Try doing a System Restore via the Recovery Options:

System Restore - Windows 7 Forums

Of special interest is the 2nd method:

METHOD TWO:
Through System Recovery Options at Boot

Note: This will allow you to restore Windows 7 to a earlier restore point with a Windows 7 installation disc from the System Recovery Options screen at bootup. This can be handy if you cannot startup Windows 7.

Ironically it is a fresh install of W7, and there are no rollback in any form: No restore points, recovery disks, etc.

So what d oyou think I could do? But thansk for your input.

If there are no ways to fix this, i'll wipe it and start the OS clean (sigh, waste of bandwidth from the updates)

You could try this: How to Run a Startup Repair in Windows 7

Ok so I have backups of the person's files that were on the laptop. After wiping and placing the files back on, the issue restarted. I scanned the computer. It found infections, one being a registry key of Vundo.

Now it won't find a vundo file, but i think that is what is causing it

The issue is:

Locked out of main user account
SFC does not work
Restore points delete (had about 7)
95% of windows services disabled, including Security Centre.
Services rely on a file or service which is disabled/removed. When trying to look at dependencies: Win32: blah blah blah.
No internet access

If you need more just ask.

Sound like you are restoring the malware when you restore the persons data. All l I can suggest is to go to our malware area and see if they can help you get rid of it.