On login - windows is setting up and takes pc back to setup status - i lose everything -

TouchSmart 310-1020
Windows 7
Purchased Jan 2011
No changes made to system since setup and install
AS of August 1, 2011 3 times upon login, I get a message "Windows is setting up...." this runs and then my desktop reverts to the out of the box black and white desktop - AND I lose everything - email addresses, emails, and ALL files and folders.  I shut down - power down, then power up and log in again - and everything is back-  Everything!
What in the world is going on - should I be worried - what can I do?

Holy cow! that is wierd.
it could be a corrupt partition or something...But it sounds serious.
what I would actually do if this was happening to me... back up everything! NOW! 
it sounds like the recovery wasn't completed correctly and could be trying to finish.
It also could be an update that has not completed.
Just a ton of possibilities.
To eliminate the possibility of any hardware issues - I'd run the diags from boot up press F9. You may even want to go into BIOS and run the short Hard Drive test. (F10)
If no hardware problems show up, I'd then run a recovery. Becasue the symptom you are describing happens if the recovery was not run to completion, or was interupted at some point. Could have been months ago...
another option call HP support for more suggestions.
good luck
bill
I'm a HP employee

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