Bad HD message, now icons missing

I have 2 hard drives on my MSI laptop. I got a random error message today that said something like " SATA Hard drive error". Now, only the items on my "data" hard drive show up on my desktop. All of my program icons are gone as well as the start menu items. I can still access all programs (I have only tried a few) but I have to find them by browsing the OS hard drive. I have tried to use system restore and the recovery cd but I get errors on both. Any thoughts? Oh, don't mind the extra spaces...my spacebar needs to be replaced lol.

 

Pretty sure your infected with a newer strain of malware, http://forums.majorgeeks.com/showthread.php?t=35407 is the link to the readme guide for the malware experts here.