I have all most the same problem, except I don't get a blue screen.
Windows says it didn't start right and try's to repair system files, and then fails at doing that.
The only option is to power down, if you do that, and ignore the system message about the improper start up message and start windows normal it will boot into windows.
You can Not do an offline defrag of system files with Perfectdisk 11 and Avast Internet Security installed.
Works fine with the free version of Avast.