First, follow these instructions from the repair screen (or use a Windows 7 install DVD or USB) to backup your important files:
Also, from the Notepad "Open File" menu, check your drive letters. They may be different in a recovery environment like this: for instance your recovery partition may be labeled C:, and your Windows 7 D:, although this is rather unusual.
The blue screen usually indicates some problem with the operating system itself, not with the boot process, that's why the "Automatic Startup Repair" won't find any trouble with booting. You can try the following: on a command prompt from the recovery environment, enter the following command to repair corrupt system files:
sfc /scannow /offdir=C:\windows /offbootdir=C:\
This will repair your filesystem in case Windows keeps failing:
chkdsk C: /f
Always replace C: with the corresponding letter for your Windows 7 installation.
You can also run a quite basic malware scan by running this from the recovery environment, and performing a full scan of your PC:
If you can't repair it, try reinstalling Windows 7. Ask us if you need any help.