If you are not going to need a repair or full reinstall of Windows since it sounds like some type of corruption or some basic files missing preventing Windows from seeing normal functioning the alternative method for starting the system restore feature is the safe mode /command prompt only option mentioned before.
http://support.microsoft.com/default...b;en-us;304449
With the keyboard seeing all these problems it may not even be Windows related but a problem with the keyboard itself or PS/2 socket on the board from normal wear except for the automatic text entries being seen. What you are seeing appearing at the console's prompt might be an indicator of the actual problem if you took notes there. That part sounds like it could be some form of malicious code? if not an actual error message like hardware failure being reported.