Alright your temps are fine so we can check that off the list. The BIOS update isn't the culprit so check that off the list. Here are your motherboard drivers: https://www.asus.com/us/Motherboards/P8Z77V_LK/HelpDesk_Download/ You will want the Audio, Chipset, LAN, and USB.
After you install those motherboard drivers you should download a program called Display Driver Uninstaller (make sure you click the link at the bottom with the newest 15.3.1.0 installer)
http://www.guru3d.com/files-details/display-driver-uninstaller-download.html
Don't run it yet!
Next download the latest AMD GPU drivers here:
http://support.amd.com/en-us/download/desktop?os=Windows+7+-+64
Don't install them yet.
To use Display Driver Uninstaller (also called DDU) you first boot into Safe Mode (mash F8 during boot up and select Safe Mode), and then run DDU to completely uninstall your GPU drivers and then reboot. Once you have rebooted into normal Windows install the latest AMD drivers you downloaded. Believe me, I've had some weird symptoms with my GPU even when I thought I was uninstalling all the old drivers to update. Once I started using DDU I haven't had any issues (plus it's free).
That could fix your problem, but if it doesn't there are a couple of other concerns I have. One is that your PSU is not a good model, from what I could tell Solytech has one of the worst reputations of any PSU so that could also be the problem.
Another concern is that all those games (as far as I know) are online, so this could also be a network issue. Make sure you have the latest Windows 7 64-bit drivers for your network card (if you're using wireless, if not then those were included in the motherboard LAN drivers). Go to www.speedtest.net and run a network speed test. See if there are any odd dips during the download portion of the test. You should run it a few times. Let me know what the speeds were.
Last concern I have (so far) is that the SATA cable AND the hard drive failed at the same time, that seems very odd to me. It could mean there was some kind of power surge or it could just be a freak coincidence. It just doesn't seem likely for both to go out at the same time.
Ok so you have some things to try, give that a shot and then let me know what happens. Hopefully the problem will be fixed but if not we will keep trying.