tried the repair more than 5 times already. Right now I am restoring the partition image from an external HDD, let's see how it goes.
PS: I used to get the AHCI bsod problem in windows xp but now I have win 7 installed and after resetting the bios it DID change to IDE mode and when it asked me whether I wanted to use AHCI I chose Yes but I don't think that is the reason. Because I have tried without IDE mode as well(by simply choosing fail safe defaults) and I still get bsod. Going to search for the fix anyway to see what I get, would appreciate if you could point me to the right direction.
UPDATED: Recovery task just finished but still the same problem. After getting to the Starting Windows screen it says windows unable to load and lets me choose to repair it but that doesn't help and the cycle continues ... so frustrating