Hibernation requires a certain amount of free HD space to be available to copy system state, The same applies for the System Restore function, if you recall we had problems with Combofix trying to create a restore point.
System restore requires approx 15% free HD space, if look at the OTL log you`ll see that you only have a touch over 10% free space available on the HD. You`ve got to suspect free space is the issue for both the Hibernation and System restore functions. Excerpt from OTL log follows:%SystemDrive% = C: | %SystemRoot% = C:\Windows | %ProgramFiles% = C:\Program Files
Drive C: | 298.00 Gb Total Space | 30.33 Gb Free Space | 10.18% Space Free | Partition Type: NTFS
Regarding the desktop.ini file, this may simply be that "Hidden files/folders" are showing, go Here
and have a read, there is an auto fix available, just hit the following icon at the site :-
Either use the Fixit function or follow the manual fix and see if that resolves the desktop.ini file issue.
Is it posible you can move Data from your HD to some external media source? Maybe Music, Videos, Pictures etc. See if that resolves the other issues....