There has to be a letter with each drive so no you can't change the drive letter you can cange the name though instead of "Local Disk" it could say some thing else and to do that you would just right click and rename.
Make sure that everything in Services and Startup is on and try a restart if you still get the error try doing a diagnostic startup should be in the general tab (Im in vista so im not sure.)
In "Startup" look for processes that you know you installed like itunes and msn messenger and whatnot. Things you know you put on. Its best to leave most of it alone if you're not sure what it is.
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