I noticed that you are blocking Microsoft's activiation servers via your HOSTS file:
# Copyright (c) 1993-2009 Microsoft Corp.
# This is a sample HOSTS file used by Microsoft TCP/IP for Windows.
# This file contains the mappings of IP addresses to host names. Each
# entry should be kept on an individual line. The IP address should
# be placed in the first column followed by the corresponding host name.
# The IP address and the host name should be separated by at least one
# Additionally, comments (such as these) may be inserted on individual
# lines or following the machine name denoted by a '#' symbol.
# For example:
# 126.96.36.199 rhino.acme.com # source server
# 188.8.131.52 x.acme.com # x client host
# localhost name resolution is handled within DNS itself.
# 127.0.0.1 localhost
# ::1 localhost
I would like to confirm that Windows is genuine. Therefore please do this:
Microsoft Genuine Advantage Diagnostic Too (MGADiag)
• Download and save MGADiag from here.
• Right-click on MGADiag.exe, select Run as administrator, and accept any User Account Control prompts.
• Click Continue.
• Click Copy.
• Paste the copied information in your next reply.
I am doing this because BleepingComputer's forum rules prohibit me from helping you if your system is pirated:
No subject matter will be allowed whose purpose is to defeat existing copyright or security measures. If a user persists and/or the activity is obviously illegal the staff reserves the right to remove such content and/or ban the user. This would also mean encouraging the use or continued use of pirated software is not permitted, and subject to the same consequences.
Furthermore, pirated versions of Windows are known to cause issues.