System restore with no mouse or keyboard

Solution 1:

A few suggestions:

Have you tried going in to safe mode? If you're lucky the bad drivers will not load, and you'll have control to be able to launch a restore.

To get to safe mode:
Repeatedly press F8 immediately after the BIOS screens disappears and you should get a menu up to select the mode you require.

Try booting with a Windows 7 install disk.

I'm fairly sure it has a system restore option on it, so you can restore directly without having to boot the unworkable system.

Connect a PS2 keyboard/mouse or use a USB-to-PS2 adapter to connect your current hardware to the PS2 ports.

Solution 2:

I just spent two hours trying to solve the same problem (keyboard and mouse shut down during system recovery, even ps2 connection doesn't work) and for some reason moving the USB mouse and keyboard from the 3.0 ports to the 2.0 ports solved all of my problems. I was able to do system restore and it fixed whatever issue I had in about a minute.