Tonight's task includes Ghosting the C drive onto an external USB drive, then put that away in a cabinet so I can always revert back to this point in the future.
That is the key, good stuff.
I know malware wasn't your issue here but if an update messes with your system then to my mind it's malware even if the originator was Microsoft. As I said though I haven't found any issues at all with the latest round of updates for XP or Windows 7
The trouble with System Restore is that it doesn't cut it, it often takes as long as restoring a complete image but only replaces some of the crucial files. Not only that it seems to be a target drop off point for malware in that when you use it after an attack the malware can replicate itself from the System Restore folder.
My suggestion is to get into an imaging routine as your system matures with all the things you like to have installed and working, save your working partition as you go and keep the image you've made today as a fail-safe fall back alongside that. You can then turn off system restore completely and free up some resources into the bargain.
I image once a week and back up two partitions, I do it from an optical disk so I don't even need the imaging software installed on my machine, it takes roughly 10 minutes a week.
Then whenever my system takes a bad turn it's literally a matter of putting the boot disk in the DVD drive and rolling back that last few days. My data is all off my OS drive so I never lose any work from having to do an image restore.
I've even got a Windows 8 partition setup now for testing and swap that out with my old XP partition if I need to, again in a matter of a few minutes. It's a very flexible policy and defeats most worries about corrupted OS's whatever they end up being caused by.
Like I've said it's even taken any logical worry that I might have had about having a DAW online and get the benefits of being connected alongside bullet proof DAW use, but each to their own in that regard. I can respect that some prefer not to court the idea but speaking for myself it has never caused an issue, rather it has given me opportunities that weren't available off-line, or at least made those thing easier to accomplish.