Usb not working to run windows

Do I know no, but sounds like a driver problem in windows or even a virus.
When using the Dell diagnosis disk, is this a self booting mechanism (doesn't) require windows to be up and running?
If so then you should be able to do a restore/ or better a repair with dell disks or sometimes it's just a certain F-key you need to press during boot as they put this feature in a special partition on the harddrive.

if i do a restore would that clear the information on the hard drive? i cant get to windows to do a driver update what would be a good course of action to take to get this fixed.

The pure version of restore is a function of Windows, unfortunately some companies like gateway, emachines and possibly Dell use the same words on their disk software which is (windows butchered).
The windows version should look something like this: "would you like to restore your computer to the last known working condition". or you may see an option to pick a date as well.
The aftermarket butchers mentioned above sometimes override this with "restore, a full format and reinstall of the original software. This wipes out everything on the drive- why so they don't have to provide you with windows support which they are responsible for by their license.
Bottom line you need to read the options offered in detail, if neccessary reboot and try another selection if possible till you see something other than - we don't want to honor our support obligation so were just going to wipe the drive!
IF it sounds like I have a fixation about relicensed windows I really don't, I do think there should be a disclaimer by copywrite law that says "This is real Windows but we have removed some of it's functionality and most of the support.
"our only support is if it doesn't start - reformat/reinstall.