Clearly it seesm that KB3004394 might well be causing problems. Just in case I retested this on my setup (also Win7/Ult/x64) and I still cannot reproduce the symptoms.
I will continue to follow this thread. Clearly my PC might be immune for some reason. Here are my specs, if anyone wants to know anything else about my PC just ask
System Information report written at: 12/10/14 10:05:42
System Name: PC1
[System Summary]
Item Value
OS Name Microsoft Windows 7 Ultimate
Version 6.1.7601 Service Pack 1 Build 7601
Other OS Description Not Available
OS Manufacturer Microsoft Corporation
System Name PC1
System Manufacturer INTEL_
System Model DH87MC__
System Type x64-based PC
Processor Intel(R) Core(TM) i5-4670K CPU @ 3.40GHz, 3401 Mhz, 4 Core(s), 4 Logical Processor(s)
BIOS Version/Date Intel Corp. MCH8710H.86A.0153.2013.1205.2003, 05/12/2013
SMBIOS Version 2.8
Windows Directory C:\Windows
System Directory C:\Windows\system32
Boot Device \Device\HarddiskVolume1
Locale United Kingdom
Hardware Abstraction Layer Version = "6.1.7601.17514"
User Name PC1\Administrator
Time Zone GMT Standard Time
Installed Physical Memory (RAM) 8.00 GB
Total Physical Memory 7.96 GB
Available Physical Memory 6.39 GB
Total Virtual Memory 15.9 GB
Available Virtual Memory 14.2 GB
Page File Space 7.96 GB
Page File C:\pagefile.sys