BSOD driver_power_state_failure?

I have been attempting to fix a friend's Acer Aspire One 721-3620 netbook. It gets BSOD driver_power_state_failure errors when attempting to debug why the built in webcam is not working. It shows in device mgr but all programs that try to access it say that there is no camera attacthed. Here are some of the last dumps. Any help much appreciated.
 

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All the minidumps point to NTOSKRNL.exe Is it possible to check the memory and hard drive? Can you reload Windows?
 
Memory tests fine, hard drive tests ok, but is quite full. I resitate to reload windows as there are tons of photos and docs the friend would rather not lose. This is one of those netbooks that comes with a restore partition, not a disk, so I am not sure I can reload windows anyway, maybe only overwrite?
 
"This is one of those netbooks that comes with a restore partition, not a disk"...
You should use an external USB CD/DVD drive to back up all the data you want to save, and format and restore that hard drive. Windows is corrupt
 
Was not able to do that as USB ports were not working. Lucky for me Acer had a restore option that saved personal files to the C: drive and set the laptop back to factory settings. Turns out it was a piece of 3rd party software that allowed iPads to be charged from USB. Deleted that and good to go.
 
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