Okay so I can now play games again due to the video drivers reinstall, don't know why the video cards program didn't catch the problem itself but I'm glad things are working again, I shall look into this HDD problem now though luckly I keep most of my programs on other harddrives if it is the windows 7 drive dying...
The video program probably just looks at the version number and doesn't check any of the currently installed files for corruption. The source of the corruption is troublesome though and it may indeed be a failing hard drive as cola_colin read in your event viewer file. You may want to try the hard drive testing tool that the manufacturers of the hard drives usually have on their website. Judging from your DxDiag.txt, your main hard drive is Seagate, so the tool to use would be: http://www.seagate.com/ca/en/support/downloads/seatools/
