It is DEFINITELY not the OS update as I worked intensive on mine just the other day - I doubt anyone has more files on theirs than I do, so if the OS caused anything it should effect me as well.

I suspect your Hard Drive is corrupted. You can check it by using Windows, through your USB cable & all. It is VERY important to NEVER unplug your USB cable before stopping the Audya drive first on your PC and this might very well be what started all of this.