Desktop unavailable

A couple of days ago my HP Envy had an automatic update run, AVG found a virus and after rebooting my machine I get this message;
C:\windows\system32\config\systemprofile\desktop is unavailavble.
I tried a system restore but that didn't fix it. I ran AVG boot disk to see if there were any other viruses, it found nothing. I was going to backup my files and reset the system but when I try to get into the folders I get the same message as before but instead of it referring to the desktop it refers to the folder that I'm trying to access. Today I got an error message for potential errors on a drive. I tried to scan the drive but it fails. I tried going into each directory, windows , then system32 then config. I get the same error at "config "
Any ideas would be a big help!
Thanks!

 

Start or restart your machine. When the HP splash scree appears press Esc the press F2 that will take you to the System Diagnostic Menu. You will be able to diagnose the HDD from there while you are there run the memory test, but let it run it takes some time to complete. If the HDD is failing it will give you an error code. If the machine is less than a year old. HP will replace the drive as long as you give them the error code so write it down. I hope this helps you.

 

I was about to run system recovery and then I saw your responses. Running the HDD extensive test now. I did run the backup before is in the step before recovery. Any idea how much that compresses files? It took forever to run but only turned out 24.5 GB. I'm not where I can actually view what's on the drive now but I thought I had a lot more on there.
Evan I'll look into your link as well.
Thanks guys, I'll let you know what I find!

 

HDD test showed no errors. Running mem test now.
Even I realize now that I had read through that link before. my desktop folder still exists. I'd read a similar thread that said to look for two desktop folders and delete the empty one. I only have one desktop folder and it seems to have everything in it that should be in it.
I had loaded windows 10 once before. It was a 4 hr nightmare after the install so I rolled it back. I probably will upgrade before the grace period runs out though.

 

I'm going to mark as solved but it really wasn't solved. I ended up completely reloading the OS, something I didn't really want to do. I was able to backup everything but my Thunderbird email file. What ever the issue was it would not let mozbackup run.