With the problems you are having I agree a new install is the best way to go. Just make sure you backup anything you don't want to lose then do a Clean install of Windows 7 Home Premium. Rather than use the discs that came with the computer, you should consider a clean install using a Windows 7 Install disc which does not have all the crapware most manufacturers include. Your choice.
If you want to do a clean install:
If you donot have a Windows7 installation DVD,or it's not up to the Service Pack level currently installed, you can download a legal copy with SP1 integrated from here:
Windows 7 Direct Download Links
Make sure you get the same version you have, Home Premium, Pro or Ultimate and 32 or 64 bit. Note that Basic or Starter is not available.
I recommend using ImgBurn at 4X speed (or the slowest available) to create the DVD from the downloaded .iso file. Just be careful during the install not to accidentally install some of the bundled junk that comes with it. Always take The Custom Install option.
You can do this on any computer capable of burning a DVD.
YOU MUST HAVE A VALID KEY TO INSTALL THIS .ISO.
The one on the COA sticker on your computer will work.
If you are just using the Recovery Console you do not need a key.
You can also create a bootable USB Flash drive (4GB or larger) to install Windows 7 from.
Download and run Universal USB Installer Easy as 1 2 3
Select Windows 7 from the first drop down list, all the way to the bottom
Select the downloaded Windows 7 iso file
Select your USB flash drive
Click Create
For techies or folks who work on computers:
Create Windows 7 Universal ISO With All Editions Selection On Install with ei.cfg Removal Utility.
This will fit on a 6GB flash drive or can be burned to a DVD.