*Sigh*
The problem that caused my Laptop to get Bonkered Was NOT SP3 NOR IE7!!
It was
ME!!! Nothing else.
Also.. The Restore partition is apparently easy to use.
Alt+F10 during boot screen (where it says press F2 to go to Bios)
Type down password......
Had to remember this after 1.5 years .
The Hint I gave myself actually helped... -> standard (standaard) 
The restoration itself just took a good 5 minutes or so.
And I now have to reinstall everything again.. (ONLY downside)
First two thing I installed where SP3 AND IE7.. And...
No F*ing problem this time.. ! (See it was ME!!)
But there are some things that ALSO got restored that I lost somewhere along these1.5 years.
(Yes, I actually killed it by small bits a time during these 1.5 years)
For one.. I regained access to the setting of Windows Firewall.
Cause when I was trying to get a good firewall for my system in the BEGIN use of my system I broke the Windows Firewall..
(Don't ask me how)
Second.. One of my Acer Utility programs actually got killed when I tried out Windows Live One Care..
(It killed some of it's important reg settings..)
Really.. Doing this Total Restore was probably the Best Thing to do for my system..
And I'm not regretting I did it.