بسم الله الرحمن الرحيم
In the name of Allah, The most Gracious, The most Merciful
I woke up this morning installing the latest Windows 7 updates that came out on 07/14/2010. It requested a reboot, so I decided I will reboot. After rebooting, my sound, web cam, USB drivers or basically any peripheral on my motherboard stopped working.
I decided to go to Device Manager and to diagnose the problem. Here is a print screen of what I saw:

I was shocked upon seeing all of my system drivers trouble starting, and each one had a different code of error. After disabling my Ethernet driver, I scanned for hardware changes and it detected my driver successfully. I performed the same action for all of the problematic drivers, and it worked flawlessly. Then I decided to reboot my computer, but guess what, same thing reoccurred.
Then I tried Goggling the issue and see if anyone had a similar problem. Luckily I was able to find this issue in one forum, Windows SevenForums. The person had the exact same issue, and imagine what the solution was, it was to uninstall iTunes.
I recalled that I installed iTunes and couple of other Apple, INC. software the night before Windows update. For some reason I blamed windows update for causing this mischief.
So if anyone ever confronts this problem, the method of fixing is just to uninstall iTunes, how unfortunate.
The main culprit according to some forums is the Bonjour service that is installed with Apple, INC. software. Windows 7 has been having issues since day one with that service.
The above pictures is courtesy of Windows SevenForums.